The company, which operates in 12 states, stressed that the bankruptcy should not affect the operations of any of its 54 daily newspapers, 100-plus non-dailies, websites, television and radio stations. MediaNews says all of the company’s papers, with one exception, are profitable. In a statement, Singleton said: “In our search for a new model that reflects the realities of today’s changing newspaper environment, we have come up with a solution that restores financial strength and flexibility to our balance sheet. It does not affect the operations of any of our newspapers or vendors or other operations. It gives us one of the strongest balance sheets in the industry. It gives us breathing space to create a new model for the newspapers we publish.”

The agreement cancels all existing equity interests in Affiliated Media—including that of Hearst, which paid $317 million for a stake in MediaNews in a complicated deal several years ago. A Hearst spokesman declined comment.

Singleton addressed the equity wipeout: “This reorganization does not come without pain. Current shareholders will be losing the value of their holdings. But we believe that adopting this plan will give us a far better platform from which to develop, grow and participate in the consolidation and re-invention of the newspaper industry.”