McClatchy Floats Bankruptcy Plan Paying Fractions to Creditors

Bankrupt news publisher McClatchy Co. is seeking approval of a bankruptcy plan that would repay unsecured creditors less than 3.2% of their claims.

McClatchy’s equity holders would get nothing following the company’s sale to term lender Chatham Asset Management, which paid about $49 million in cash, according to a disclosure statement filed in support of the plan Aug. 21. Chatham also applied more than $262 million of McClatchy’s secured debt it’s owed to the purchase price.

The U.S. Bankruptcy Court for the Southern District of New York approved the sale earlier this month. The court also cleared a global settlement ...