Lee Enterprises warns of possible loan default if noteholders don't waive net worth requirement

By Sara Rosenberg

New York, Dec. 17 - Lee Enterprises Inc. expects to need noteholders to waive the minimum net worth covenant in the guaranty agreement related to its $306 million senior notes, and unless waived, the condition would create a cross-default under the company's credit facility, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The waiver is needed as a result of expected impairment charges totaling at least $180 million after tax for the fourth quarter of the fiscal year ended Sept. 28.

Lee Enterprises is a Davenport, Iowa-based publisher of local news, information and advertising.

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