SACRAMENTO, Calif.,
Jan. 2, 2020 /PRNewswire/
-- McClatchy (NYSE American-MNI) today
disclosed that it will not be releasing
certain nonqualified Supplemental Executive Retirement
Benefits to a small number of participants at this time as it
continues to address its long-term liquidity pressures arising from
its qualified pension obligations due in the third quarter of
2020.
Elaine Lintecum, Chief Financial
Officer, commented, "This decision is not taken lightly, but at a
time when the Company is actively negotiating the future of the
qualified pension plan, it would be inconsistent with our culture
to continue payments on the non-qualified plans."
As explained in its November
13th press release, the Company is in active restructuring
negotiations with lenders, bondholders and the Pension Benefit
Guarantee Corporation about the future of both qualified
and non-qualified pension obligations.
Since these discussions are still ongoing, McClatchy will not
release certain unsecured, nonqualified payments as
part of its restructuring discussions. This has no impact
on the Company's continuing operations, or any benefits
covered by McClatchy's $1.3 billion
qualified pension, whose distributions continue as before. The
company has sufficient liquidity to address all of its ordinary
course operational cash needs and obligations at this time.
Pending the outcome of
the capital-structure discussions, McClatchy, as
a public company, is unable to provide additional guidance
beyond the information already contained in its November 13th press release but will disclose the
appropriate information at the conclusion of its discussions.
About McClatchy
McClatchy operates 30 media companies in 14 states, providing
each of its communities with strong independent local journalism in
the public interest and advertising services in a wide array of
digital and print formats. McClatchy publishes iconic local brands
including the Miami Herald, The Kansas City Star, The Sacramento
Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the
Fort Worth Star-Telegram. McClatchy is headquartered in
Sacramento, Calif., and listed on
the New York Stock Exchange American under the symbol MNI.
#ReadLocal
Contact:
|
Elaine Lintecum, VP
Finance and CFO
|
|
916-321-1846
|
|
elintecum@mcclatchy.com
|
Additional Information
Statements in this press release regarding future financial and
operating results, including our strategies for success and their
effects, our restructuring efforts with PBGC and our largest debt
holder, our real estate monetization efforts and the repurchase of
outstanding notes, revenues, and management's efforts with respect
to cost reduction efforts and efficiencies, cash expenses,
revenues, adjusted EBITDA, debt levels, interest costs and creation
of shareholder and investor value as well as future opportunities
for the company and any other statements about management's future
expectations, beliefs, goals, investments, plans or prospects
constitute forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. Any
statements that are not statements of historical fact (including
statements containing the words "believes," "plans," "anticipates,"
"expects," "estimates" and similar expressions) should also be
considered to be forward-looking statements. There are a
number of important risks and uncertainties that could cause actual
results or events to differ materially from those indicated by such
forward-looking statements, including: we may not generate
cash from operations, or otherwise, necessary to reduce debt; we
may not be successful in reducing debt whether through open market
repurchase programs or other negotiated transactions; our ability
to borrow under our credit agreement is contingent on our ability
to meet the conditions set forth therein at such time; sales of
real estate properties may not close as anticipated or result in
cash distributions in the amount or timing anticipated; we may not
successfully implement audience strategies designed to increase
audience revenues and may experience decreased audience volumes or
subscriptions; we may experience diminished revenues from
advertising; we may not achieve our expense reduction targets
including efforts related to legacy expense initiatives or may do
harm to our operations in attempting to achieve such targets; our
operations have been, and will likely continue to be, adversely
affected by competition, including competition from internet
publishing and advertising platforms; increases in the cost of
newsprint; bankruptcies or financial strain of our major
advertising customers; litigation or any potential litigation;
geo-political uncertainties including the risk of war; changes in
printing and distribution costs from anticipated levels, including
changes in postal rates or agreements; changes in interest rates;
changes in pension assets and liabilities; changes in factors that
impact pension contribution requirements, including, without
limitation, the value of the company-owned real property that we
have contributed to our pension plan; potential increases in
contributions to our qualified defined benefit pension plan in the
next several years; increased consolidation among major retailers
in our markets or other events depressing the level of advertising;
our inability to negotiate and obtain favorable terms under
collective bargaining agreements with unions; competitive action by
other companies; and other factors, many of which are beyond our
control; as well as the other risks listed in the company's
publicly filed documents, including the company's Annual Report on
Form 10-K for the year ended December
30, 2018. We may be unable to reach an
out-of-court restructuring agreement, in which case we will likely
be required to seek protection under Chapter 11 of the US
Bankruptcy Code. Except as required by law, we disclaim any
intention and assume no obligation to update the forward-looking
information contained in this release.
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SOURCE McClatchy