(Reuters) - News publisher McClatchy Co (MNI.A), which operates The Miami Herald, on Thursday filed for Chapter 11 bankruptcy protection and said it expects to close the process in the next few months.
The publisher obtained $50 million in debtor-in-possession financing which, coupled with its operating cash flows, provides enough liquidity for McClatchy and all its 30 local news outlets to operate as usual, the company said.
The company, one of the largest newspaper publishers in the United States, had been burdened by heavy debt it took on when it bought newspaper chain Knight Ridder Inc in 2006 in a $4.5 billion deal.
McClatchy is also known to have large pension obligations that eat into its profits.
Reporting by Bharath Manjesh in Bengaluru; Editing by Shinjini Ganguli