McClatchy Update On Non-Qualifed Supplemental Executive Retirement Benefits

SACRAMENTO, Calif., Jan. 2, 2020 /PRNewswire/ -- McClatchy (NYSE American-MNI) today disclosed that it will not be releasing certain nonqualified Supplemental Executive Retirement Benefits to a small number of participants at this time as it continues to address its long-term liquidity pressures arising from its qualified pension obligations due in the third quarter of 2020. 

Elaine Lintecum, Chief Financial Officer, commented, "This decision is not taken lightly, but at a time when the Company is actively negotiating the future of the qualified pension plan, it would be inconsistent with our culture to continue payments on the non-qualified plans." 

As explained in its November 13th press release, the Company is in active restructuring negotiations with lenders, bondholders and the Pension Benefit Guarantee Corporation about the future of both qualified and non-qualified pension obligations.

Since these discussions are still ongoing, McClatchy will not release certain unsecured, nonqualified payments as part of its restructuring discussions. This has no impact on the Company's continuing operations, or any benefits covered by McClatchy's $1.3 billion qualified pension, whose distributions continue as before. The company has sufficient liquidity to address all of its ordinary course operational cash needs and obligations at this time.

Pending the outcome of the capital-structure discussions, McClatchy, as a public company, is unable to provide additional guidance beyond the information already contained in its November 13th press release but will disclose the appropriate information at the conclusion of its discussions.

About McClatchy

McClatchy operates 30 media companies in 14 states, providing each of its communities with strong independent local journalism in the public interest and advertising services in a wide array of digital and print formats. McClatchy publishes iconic local brands including the Miami Herald, The Kansas City Star, The Sacramento Bee, The Charlotte Observer, The (Raleigh) News & Observer, and the Fort Worth Star-Telegram. McClatchy is headquartered in Sacramento, Calif., and listed on the New York Stock Exchange American under the symbol MNI. #ReadLocal

Additional Information

Statements in this press release regarding future financial and operating results, including our strategies for success and their effects, our restructuring efforts with PBGC and our largest debt holder, our real estate monetization efforts and the repurchase of outstanding notes, revenues, and management's efforts with respect to cost reduction efforts and efficiencies, cash expenses, revenues, adjusted EBITDA, debt levels, interest costs and creation of shareholder and investor value as well as future opportunities for the company and any other statements about management's future expectations, beliefs, goals, investments, plans or prospects constitute forward-looking statements  as defined in the Private Securities Litigation Reform Act of 1995. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. There are a number of important risks and uncertainties that could cause actual results or events to differ materially from those indicated by such forward-looking statements, including: we may not generate cash from operations, or otherwise, necessary to reduce debt; we may not be successful in reducing debt whether through open market repurchase programs or other negotiated transactions; our ability to borrow under our credit agreement is contingent on our ability to meet the conditions set forth therein at such time; sales of real estate properties may not close as anticipated or result in cash distributions in the amount or timing anticipated; we may not successfully implement audience strategies designed to increase audience revenues and may experience decreased audience volumes or subscriptions; we may experience diminished revenues from advertising; we may not achieve our expense reduction targets including efforts related to legacy expense initiatives or may do harm to our operations in attempting to achieve such targets; our operations have been, and will likely continue to be, adversely affected by competition, including competition from internet publishing and advertising platforms; increases in the cost of newsprint; bankruptcies or financial strain of our major advertising customers; litigation or any potential litigation; geo-political uncertainties including the risk of war; changes in printing and distribution costs from anticipated levels, including changes in postal rates or agreements; changes in interest rates; changes in pension assets and liabilities; changes in factors that impact pension contribution requirements, including, without limitation, the value of the company-owned real property that we have contributed to our pension plan; potential increases in contributions to our qualified defined benefit pension plan in the next several years; increased consolidation among major retailers in our markets or other events depressing the level of advertising; our inability to negotiate and obtain favorable terms under collective bargaining agreements with unions; competitive action by other companies; and other factors, many of which are beyond our control; as well as the other risks listed in the company's publicly filed documents, including the company's Annual Report on Form 10-K for the year ended December 30, 2018.  We may be unable to reach an out-of-court restructuring agreement, in which case we will likely be required to seek protection under Chapter 11 of the US Bankruptcy Code.  Except as required by law, we disclaim any intention and assume no obligation to update the forward-looking information contained in this release.

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SOURCE McClatchy