UPDATE 1-Big U.S. newspaper publisher exits bankruptcy

NEW YORK, March 19 (Reuters) - Affiliated Media Inc, a holding company for the second-largest U.S. newspaper publisher by circulation, said on Friday it emerged from Chapter 11 bankruptcy protection after reducing debt by 82 percent.

The holding company for MediaNews Group, whose more than 150 newspapers, including the Denver Post and San Jose Mercury News, filed for protection from creditors on Jan. 22 after agreeing with creditors on a prepackaged reorganization plan.

Affiliated Media has said all but one of its newspapers were profitable, but that falling advertising and the current market environment left it unable to sustain what it called 'yesterday's balance sheet.'

U.S. Bankruptcy Judge Kevin Carey in Wilmington, Delaware on March 4 approved the reorganization plan, which reduced Affiliated Media's debt to $165 million from $930 million.

Management remained unchanged, including Chairman and Chief Executive William Dean Singleton, who is also chairman of The Associated Press.

Other publishers to seek bankruptcy protection in the last two years are Tribune Co, which runs the Chicago Tribune and Los Angeles Times; Philadelphia Newspapers, which publishes that city's Inquirer; and Freedom Communications Holdings Inc, which publishes of the Orange County Register.

The case is In re Affiliated Media Inc, U.S. Bankruptcy Court, District of Delaware, No. 10-10202.

(Reporting by Jonathan Stempel; editing by Andre Grenon) Keywords: AFFILIATEDMEDIA/BANKRUPTCY EXIT ([e-mail] [phone]; Reuters Messaging: [e-mail]) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.