Daily News' landlord objects to bankruptcy filing

Two more objections were filed in the MediaNews Group's Chapter 11 bankruptcy case. One of them comes from the Los Angeles Daily News's landlord.

From the Denver Business Journal:

Warner Gateway Partners, the Daily News’ landlord, asked the Bankruptcy Court to require proof that Los Angeles Daily News Publishing Co. can pay the lease on its building, or else to reject an effort by its parent, MediaNews, to reassign the lease to it.

The Los Angeles Daily News occupies about one-quarter of the Warner Gateway project in Woodland Hills. MediaNews Group holds a 15-year, $27.6 million lease that expires in 2022, according to the filing.

The filing says representatives of the debtor began discussing a possible lease modification in January, but never made an offer, and provided information showing that the Daily News had lost $5 million over the past two years.

Bank of New York Mellon Trust filed the other objection, asking the court to ensure its "fees and expenses" are paid.

Last week, GreenCo filed the first objection in the case. The company says it is owed at least $8.4 million for an option it has held since 1998 to buy all of the Daily News' assets.

This week in bankruptcy news

Freedom Communications, owner of the Orange County Register, has filed a reorganization plan in a Delaware court and expects to emerge from bankruptcy at the end of March. From the Register:

Under the plan, Freedom’s secured debt would be reduced from $770 million to $325 million. Unsecured creditors would split an initial $32.2 million but would be able to pursue a lawsuit against the company board and insurance companies in an effort to recoup up to $25 million more.

The Hoiles family, which has owned the flagship Register newspaper since 1935, would have no ownership. The lenders have already named a new board of directors that will take over when the company emerges from bankruptcy. According to the court filings, Osborne will be the post-bankruptcy CEO. He has been interim chief executive since last summer.

MediaNews Group, meanwhile, will file its bankruptcy plan sometime in early March and already an affiliate of the Tribune Co. has filed a preemptive challenge. From the Denver Business Journal:

According to the objection, GreenCo paid $2.4 million in 1998 for an irrevocable option to buy all of the assets and business operations of the Los Angeles Daily News, which is owned by MediaNews Group. The option, which was due to expire in 2010, has never been exercised, and GreenCo says it’s owed at least $8.4 million under the terms of the contract.

Unwinding the Rocky from the Post

The Denver Post fired 40 people from the business department on Friday and will fire another 160 people in the coming weeks, according to the Denver Business Journal:

The Denver Newspaper Agency's job cuts are “partly an effort to resize the work force after the closure of the Rocky Mountain News in February,” the Post announced late Friday on its website. Post newsroom workers were not involved.

And who's that calling the shots now in Denver? Gerald Grilly, former head of LANG:

“These actions will help us shape a new business model that will allow us to adapt to new market realities,” Gerald Grilly, DNA president/CEO, said in the Post’s statement. “We are not just ink on paper anymore; we are true information providers across many platforms. The new shape of our industry demands that we work leaner and smarter to serve our customers.”

Stop looking at me

After receiving a lowly "CCC" grade on its debt, MediaNews asked that Standard & Poor's withdraw its credit ratings for the newspaper chain. On Thurday, S&P complied with the request, according to the Denver Business Journal.