Because of the default, Champion could face accelerated maturity of some of its remaining outstanding debt.
According to its latest earnings report, the company still has $38.2 million in outstanding interest-bearing debt, mostly remaining from its acquisition of The Herald-Dispatch.
Champion chairman and CEO Marshall Reynolds had warned in prior earnings releases that the company could face a default by March 31, due to the restrictive nature of some of its debt covenants.
Reynolds has maintained that despite the financial challenges the company has faced, its core business has remained strong in recent quarters.
He has pledged to work with banks and financial advisers to resolve the company's issues on the debt side of its balance sheet.
"We intend to work with our secured creditors and advisors to address our debt maturities and liquidity to the best of our ability, and if successful in stabilizing our funding platform going forward, we believe our core business has the opportunity to improve," Reynolds said in a statement last month.
According to SEC filings, Boates will be paid fees of either $400 an hour or $4,000 per day for working with the company.
The filings say Boates' responsibilities will include "directing the management of Champion's operations, evaluation of Champion's cash and liquidity requirements, directing the efforts of Champion's management and employees in connection with any sale or restructuring initiatives, directing negotiations with and reporting to the Company's significant creditors, directing all cash management matters and assisting in the development and implementation of a plan of reorganization, if appropriate."
Contact writer Jared Hunt at busin...@dailymail.com or 304-348-4836.