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Updated as of April 16, 2020

On February 13, 2020, we announced that we have commenced a voluntary restructuring under Chapter 11 of the U.S. Bankruptcy Code. On April 16, we provided another update to our Chapter 11 process as we also pursue an agreement for the sale of our business. These processes allow us to achieve the goals we set out from the start, which were to position ourselves for future growth while addressing legacy debt and pension obligations.

On April 16, 2020, we announced that we received a non-binding offer to purchase the company through this proven process from funds owned by Chatham Asset Management and Brigade Capital Management. Under terms of the proposal, we will be able to execute a change in ownership while addressing legacy debt and pension obligations. Importantly, under terms of the proposal, McClatchy would remain one company

We want to emphasize that we still anticipate that go-forward vendors who continue to do business with us will be unaffected by the Chapter 11 and sales process, although it continues to be possible that some payments due prior to the commencement of cases to certain go-forward vendors may be delayed. We expect delayed payments will be cured or paid at closing, as we have already received a proposal that reflects an assumption of substantially all amounts owed to the Company’s go-forward trade vendors. To date, we have paid our bills under the normal terms of our contracts, and we believe we have minimal outstanding trade payables as of the filing.

To be clear, our finances continue to be sufficient to fund McClatchy’s operations, as well as the restructuring process, even amid the extraordinary global circumstances we are all facing right now.

Thank you for your continued support through this process. We appreciate your partnership.

Frequently Asked Questions

1. How will the restructuring and sale process affect McClatchy’s relationship with your vendors? Can I continue to work with McClatchy throughout the filing?

The proposal reflects an assumption of substantially all amounts owed to the Company’s go-forward trade vendors. So, as we announced previously, we anticipate that go-forward vendors who continue to do business with us will be unaffected by the Chapter 11 process, although it is possible that some payments due prior to the commencement of cases to certain go-forward vendors may continue to be delayed. We expect that delayed payments due to go-forward vendors will be cured or paid at closing.

2. Will I experience any changes to the terms of my contract as a result of this filing?

McClatchy and our 30 local newsrooms are operating as usual, and we continue to rely on our partnership with our vendors to deliver for our readers and subscribers. We do not expect there to be contract changes for the vast majority of our vendors. We will be in touch with any impacted vendors as we proceed with our case.

3. Does McClatchy have the necessary financial resources to pay vendors while undergoing the Chapter 11 process?

As previously disclosed, McClatchy and its 30 local newsrooms continue to operate as usual, and the company is fulfilling its commitments to its stakeholders, including its vendors. Our finances continue to be sufficient to fund McClatchy’s operations, even amid the extraordinary circumstances posed by the unfolding COVID-19 pandemic and associated global economic challenges.

4. Will I continue to be paid in a timely manner throughout the restructuring process? Will there be any changes to payment processes or schedule?

We received approval from the Bankruptcy Court on February 14 to continue paying go-forward vendors in full under normal terms for goods and services provided on or after February 13, 2020, so we anticipate that those go-forward vendors that continue to do business with us will be unaffected by the Chapter 11 process. It is possible, however, that some payments due prior to the commencement of cases to certain go-forward vendors may be delayed. We expect that delayed payments due to go-forward vendors will be cured or paid at closing.

5. Are there any forms I need to complete or any other actions I need to take to ensure I am paid for goods and services?

If you believe you are owed money for goods and services delivered before the filing of our Chapter 11 petitions on February 13, you should visit www.kccllc.net/McClatchy for more information.

6. Why should I continue doing business with McClatchy?

In addition to the fact that we fully expect to pay current suppliers in the ordinary course of business, we believe this path represents the best option for a timely and efficient resolution to protect the company’s future. Once completed, this process will provide certainty to our stakeholders who benefit from a financially strong McClatchy – including our vendors.

7. What is a “pre-petition” claim? What is a “post-petition” claim?

Pre-petition claims refer to the few select cases where there are invoices outstanding for goods or services delivered to McClatchy before February 13, the day of our Chapter 11 filing, which will need to be settled as a part of the Chapter 11 process. Please note that it is anticipated that those go-forward vendors that continue to do business with us will be unaffected by the Chapter 11 process, although it is possible that some pre-petition payments to certain go-forward vendors may be delayed. . We expect that delayed payments due to go-forward vendors will be cured or paid at closing.

Post-petition refers to payments to vendors for all goods and services deliver on or after our filing date of February 13. We fully expect to pay these vendors in the ordinary course of business for all goods and services delivered on or after February 13 – or “post-petition”.

8. How do I know if I have a pre-petition claim? What do I do if I have a pre-petition claim?

To date, we have paid our bills under the normal terms of our contracts, and we believe we have minimal outstanding trade payables as of the filing. If you believe you have a pre-petition claim, your company may file a proof-of-claim form with the Court. This form can also be found online at www.kccllc.net/McClatchy.

9. How will I be kept informed during this process? Where can I go if I have additional questions?

We are fully committed to keeping you updated throughout this process. If you have any questions about today’s announcement, please direct them to your usual contact. You can also visit this dedicated microsite, www.McClatchyTransformation.com, for more information.