I first heard about Zhu Zhu Pets two weeks ago from a member of the newspaper’s Readers Advisory Board, who said he’d had difficulty finding the  artificial rodent. Then I came upon the story in Saturday’s New York Times about the  $7.99 motorized hamsters bearing the names Chunk, Pipsqueak, Mr. Squiggles, Num Num and Patches, and how they are main coveted by girls.

Finally, when shopping for something else Saturday at Toys ” R” Us,  I came upon a short stack of the toys at the store’s cash register; the sales clerk said they were going fast. Frankly, I’m just not impressed;  the Zhu Zhu Pets look like a cat or dog chew toy. Of course, if my daughter says she want one…

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Post from: Ask the Editor

Freedom execs defend bankruptcy plan

Two executives from Irvine-based Freedom Communications Inc. today defended the company’s bankruptcy reorganization plan — which has been criticized by a former chief executive as “wicked and immoral”  — and said they expect to complete the process by June 2010.

“We are making progress with the effort to restructure the company through the Chapter 11 filing,” said Freedom Chief Executive Burl Osborne during a conference call with a group of Freedom reporters.  It was the first time officials at Freedom, parent of the Orange County Register, have discussed the reorganization plan since the company filed for bankruptcy Sept. 1.

Freedom filed voluntary bankruptcy after working out a prepackaged deal with its lenders. Under the plan, the banks would get  a 98 percent stake in the company in return for reducing the company’s debt from $770 million to $325 million.  Existing shareholders — members of the founding Hoiles family and two private equity firms— would get a 2 percent interest in the restructured company and the opportunity to buy 10 percent more.

The unsecured creditors committee, however, called the plan the product of  “an unholy alliance” between the banks and the current board of directors. They say the plan offers creditors just $5 million of the of $300 million Freedom says they are owed.

Freedom Chief Financial Officer Mark McEachen said the plan is fair because the shareholders will get no stake if the unsecured creditors do not approve the reorganization plan.

“Everyone’s interests are aligned,” he said.

In addition, he said the $300 million figure had been misunderstood.  He said it represented total liabilities but that “less than $25 million” is owed to the unsecured creditors. (That does not include a separate $28.9 million legal settlement with Register newspaper carriers. The company contends the bankruptcy filing voided the settlement.)

“That number, that ratio of $5 million to less than $25 million is a lot better recovery than in usual recoveries,” McEachen said.

Rob Feinstein, attorney for the unsecured creditors committee, said he took the $300 million figure from the company’s bankruptcy filing.

“If the numbers work out better than that, great,” he said.

Feinstein, however, said it was unfair to give the unsecured creditors less then they are owed and then make any payment contingent on the existing shareholders retaining a stake in the company.

“Creditors are impaired all the time, but you don’t impair the creditors and give more to the shareholders,” he said.

Among the unsecured creditors are about 100 highly-compensated current and former executives and their survivors who are owed about $17 million in pension money. The company cut off those pension payments as part of the bankruptcy.

Osborne said he was sympathetic to those who lost their pensions but that such plans often are voided in bankruptcy proceedings.

“It’s not that someone at Freedom did not like this program and wanted to get rid of it,” Osborne said.

Former Chief Executive Alan Bell, who is leading an effort to recover the pension money, accused the company of needless cruelty. He said these people worked hard, believing that they would be paid pensions.

McEachen said Freedom is not currently shopping the company and has declined several offers by what he called “bottom feeders.”

The unsecured creditors committee has asked the bankruptcy court in Delaware for permission to seek buyers or better alternative proposals.

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In addition to the musical entertainment, the evening will also include dinner, a dessert fountain and silent auction. Proceeds benefit the ongoing effort to jumpstart the Sutter Performing Arts endeavor. In addition, the silent auction benefits the Yuba-Sutter Regional Arts Council (disclosure time: I’m a YC Rotary Club member and YSRAC board member. Oh, and I have a bit part in the production).

Individual tickets are $50: premier seating tables are $550 each. There are three ways to get tickets: Fax a form from the newspaper to Linda Plummer at 751-4226; purchase tickets online at www.wwwob.com; or pick them up at a variety of locations, including Yuba Sutter Mall; the Appeal-Democrat, Kaffe T Latta and Jacque’s Dance Expressions.

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Pulling off this activity requires a handful of folks, so it’s no small effort. But we believe the benefit to readers is worth the work. The newspaper plans to produce more of these events as coverage warrants.

Log on to www.appealdemocrat.com for the 6 p.m. livestreaming.

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Post from: Ask the Editor

Very engaging session going on now: “Twitter with Care: Journalists and Social Media.” Discovering that the A-D is keeping good company with the bigger newspapers using Facebook and Twitter in the newsrooms.

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Post from: Ask the Editor

A fall book sale is scheduled for Oct. 24-28, and books are being collected now. Here’s partial version of press release about the book drive and sale:

FRIENDS OF THE LIBRARY SEEKING BOOKS FOR FALL SALE

The Friends of the Packard Library of Yuba County is conducting a book drive to increase the inventory for its Fall book sale, which will be held Oct. 24-28 at the county library in Marysville.  All proceeds from the semi-annual sale will go to the support of Library programs.
Book donations can be left now through Oct. 20 in special  drop-off boxes at three locations in Marysville, during regular business hours:
- The Appeal-Democrat, 1530 Ellis Lake Drive (Mon.-Fri.),
- The Yuba Sutter Regional Arts Council, 624 E Street (Tues.-Fri.)
- The Brick Coffeehouse Cafe,  316 D Street (daily).
Donors with large numbers of books or who are unable to go to a drop-off location, may request a pick-up.  Friends of the Library Board member Michael Paine is coordinating the pick-up program and may be contacted at (530) 742-0730. (Donors are asked to not bring books to the Library itself during the book  drive period; because of space limitations, book sorting is done elsewhere.)
The Friends of the Packard Library of Yuba County is a non-profit organization whose primary mission is to raise money for the Yuba County Library. Membership in the Friends of the Library is $12 per year for individuals and $50 for local businesses. Applications are available at the organization’s new Webs ite, www.friendsoftheyubacountylibrary.org.

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This year’s affair showcases “fall comfort classics” prepared on stage by culinary specialist Kristi Larson. In addition to the cooking demonstrations, the show will feature door prizes, free goodie bags and chances to take home other good stuff. Doors open at 4 p.m.; the show begins at 6 o’clock.

Tickets are just $12. You can pick them up Monday at the Appeal-Democrat office in Marysville or at the fairgrounds doors Tuesday. Tania Delling and others here at the A-D have been working hard to guarantee a good time will be had by all. And yours truly will be doing the emcee bit again this year. Make sure you stop me to say hello.

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