Freedom Communications eyes exclusivity extension to resolve issues

By Caroline Salls

Pittsburgh, Nov. 28 – Freedom Communications, Inc. requested an extension of the exclusive periods under which only the company and official committee of unsecured creditors appointed for its case can file and solicit votes on a Chapter 11 plan, according to a motion filed Monday with the U.S. Bankruptcy Court for the Central District of California.

Specifically, Freedom is asking the court to extend the exclusive plan-filing period through Feb. 17 from Nov. 29 and the solicitation period through April 28 from Jan. 28.

Since the closing of its assets sale, Freedom said it and the committee have focused their attention on negotiating and preparing a joint plan of liquidation.

However, in order to assist the company and committee in formulating a plan, Freedom said an accurate amount of estimated debt needs to be determined. In that regard, the company has filed seven omnibus objections to claims, all but one of which have been resolved.

Freedom said it continues to review other claims for potential objections.

In addition, the company said a recently filed motion for court approval to reject unexpired leases and executory contracts is pending. Freedom said this approval will prevent the accrual of any additional potential administrative expense obligations without any benefit to its estates.

An action seeking to invalidate a lien against the sale proceeds also remains unresolved, the motion said, and is scheduled for mediation on Dec. 20.

Also, the company said it is seeking the recovery of substantial tax refunds from the State Board of Equalization.

Based in Santa Ana, Calif., Freedom Communications is a newspaper company. It filed for bankruptcy on Nov. 1, 2015 under the Chapter 11 case number is 15-15311.

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