DOVER, Del. (AP) -- GateHouse Media Inc., which owns more than 400 community newspapers around the country, has filed for Chapter 11 bankruptcy protection in Delaware.
Friday's filing comes after the Fairport, N.Y.-based company announced earlier this month that it would file a prepackaged bankruptcy plan in order to restructure $1.2 billion in debt.
Under the plan, Newcastle Investment Corp., which owns 52 percent of GateHouse's outstanding secured debt, will combine GateHouse's media holdings with a batch of Dow Jones Local Media publications it recently bought from News Corp.
Newcastle will then issue stock in a new publicly traded holding company called New Media Investment Group. Holders of GateHouse secured debt could take stock in the new company or cash at 40 cents on the dollar