McClatchy asks bankruptcy judge to set July 23 sale deadline, hints at consolidation

McClatchy Co. has asked a bankruptcy judge to set a July 23 deadline to approve a buyer, as new court filings raise the prospect of consolidation with another large media chain.

Lawyers and financial advisers representing the company also asked the court to extend the bankruptcy process for up to 120 days as negotiations over a potential restructuring continue.

This week’s filings lay out the dual-track plan being pursued by McClatchy as it seeks to exit bankruptcy as fast as possible while still intact. One track would end in a blockbuster sale of the nation’s second largest local news company. The other involves a Chapter 11 restructuring that could leave it in the hands of the two hedge funds that are its largest creditors.

The flurry of developments came ahead of a Thursday hearing on the sale process, and effectively outline a new roadmap for dissolution of a company founded more than 160 years ago.

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