Freedom Communications Files Chapter 11 Protection

A national media company that owns more than 30 daily newspapers and eight television stations has reportedly sought bankruptcy protection.

Freedom Communications announced yesterday that it has assets "as much as" $1 billion and debt of more than $1 billion, according to court papers. The Irving, California-based company said it went ahead with filing after a majority of Freedom's lenders agreed to support a debt restructuring plan.

"Reaching this agreement with our lenders provides us with an orderly process to realign our balance sheet with the realities of today's media environment," said Freedom CEO Burl Osborne.

When speaking to the New York Times on the issue, Osborne assured that the company's assets would be sold as part of the plan to restructure debt.

"Coming out, I think we're going to be in a much stronger position," Osborne said. "What we are hoping to see is at some point a bottom, so we can begin to grow again."

According to Freedom, the existing owners will have their equity stakes reduced to about 2 percent once the company emerges from bankruptcy protection.