Publisher files for reorganization

Tracy Press Inc., publisher of the Tracy Press and the Scotts Valley/San Lorenzo Valley Press-Banner, has filed for Chapter 11 reorganization in order to stabilize its financial condition while continuing operations.
The filing was completed Friday, July 2, in U.S. Bankruptcy Court in Sacramento, which oversees Chapter 11 of the U.S. Bankruptcy Code. The filing will permit the Press to restructure its business while working to improve its financial condition under supervision of the court.
The Press’ publishers said the newspapers and their online operations should be able to continue uninterrupted during the Chapter 11 process.
The company also owns the Patterson Irrigator in Patterson.
They said the filing is in keeping with the publishing company’s obligation to its readers, advertisers and employees to continue its newspaper and online services. The Tracy Press recently reduced its publishing schedule to one edition a week to bring expenses in line with revenues during the current economic recession.
The Press-Banner, which has been owned and operated by the Tracy Press since September 2005, will continue to publish Fridays. It is distributed to 20,000 homes in Scotts Valley, Felton, Boulder Creek, Ben Lomond and other unincorporated parts of Santa Cruz County.