Davis Polk & Wardwell LLP is advising Bank of America, N.A. (“BofA”) as agent for the prepetition senior secured lenders to Affiliated Media, Inc. (“AMI”) in connection with AMI’s restructuring pursuant to a prepackaged Chapter 11 plan in the Delaware Bankruptcy Court. The Bankruptcy Court has confirmed the prepackaged plan, and the transactions contemplated thereby are expected to be consummated shortly. The BofA-led lenders are owed approximately $590 million and voted overwhelmingly to approve the prepackaged plan that will result in their receiving 88% of the equity in AMI upon its emergence from bankruptcy, together with a new $150 million senior secured credit facility and payment of accrued interest and fees. The prepetition subordinated debt holders will receive out-of-the-money warrants for their recovery. Davis Polk helped to structure and negotiate the plan of reorganization and prosecute confirmation of the plan.

AMI, the holding company for the Media News Group family of newspapers, is the nation’s second-largest newspaper publisher by circulation and is the owner of 54 daily newspapers and more than 100 non-daily newspapers, in addition to websites and television and radio broadcasters serving markets in 12 states.

The Davis Polk restructuring team is headed by John Fouhey, together with partner Damian S. Schaible and associates James M. Millerman, Steven C. Krause, Darren Mahone, Scott Lunin (not yet admitted), Brandon Smith (not yet admitted) and Eric L. Ruiz (not yet admitted). John Fouhey and associates Justin Goldblatt, Vivian Y. Wong and Tenley L. Laserson are providing credit advice. Partners John J. McCarthy Jr. and Michael Davis, together with associates Andrew M. Delia and Aman Solomon, are providing advice on corporate structure and governance, as well as on FCC matters and the warrants. Partner Edmond T. FitzGerald and associate Ann Becchina are advising on compensation and employee benefits issues. Partner Julia K. Cowles is providing securities law advice, and partner Michael Mollerus and associate Ryan LaRosa are providing tax advice. Ms. Cowles and Mr. LaRosa are based in the Menlo Park office. The other members of the Davis Polk team are based in the New York office.