E&P report says bankruptcy sale of Brown Publishing newspapers under fire on two sides
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E&P report says bankruptcy sale of Brown Publishing newspapers under fire on two sides
According to a report this week rom media industry website www.editorandpublisher.com, "The Official Committee of Unsecured Creditors in the Brown Publishing Co. Chapter 11 bankruptcy proceeding at U.S. Bankruptcy Court in Central Islip, N.Y., has filed an objection with respect to the sale of real estate during the July 19-20 asset auction."
Jim Rosenberg, a senior editor at E&P, reports, "The committee argues that 'the process pursued by the debtors and its representatives was designed to be anything but a thorough, robust, competitive process.' It opposes acceptance of a bid for three parcels of land, calling the proposed transaction 'not even marginally reasonable.'
"According to the committee's filing, five qualified bids were received for Cincinnati-based Brown Publishing's assets. One bidder was Brown Media Corp., controlled by for Brown Publishing chief Roy Brown and two of his executives. The other bidders were not identified, but the objection notes that the auction resulted in an agreement to four separate transactions with two purchasers. One transaction would be solely for real estate assets."
In its objection to the sale, the committee said, "In the closing moments of the auction on July 20, 2010, the Debtors' counsel who conducted the auction, announced that the debtors would entertain offers for the Debtor's owned real property. Brown Media offered $10,000 in total plus any taxes owned for the three properties, said to be in Xenia, Bellevue and Urbana, Ohio."
Brown Publishing owns The Times-Gazette and County Shopper in Hillsboro, as well as newspapers in surrounding counties, including: The Wilmington News Journal and Star Republican, The Record Herald in Washington C.H., The People's Defender in West Union, The News Democrat in Georgetown and The Ripley Bee.
For more information, go to www.editorandpublisher.com.
According to a report this week from media industry website www.editorandpublisher.com, "The Official Committee of Unsecured Creditors in the Brown Publishing Co. Chapter 11 bankruptcy proceeding at U.S. Bankruptcy Court in Central Islip, N.Y., has filed an objection with respect to the sale of real estate during the July 19-20 asset auction."
Jim Rosenberg, a senior editor at E&P, reports, "The committee argues that 'the process pursued by the debtors and its representatives was designed to be anything but a thorough, robust, competitive process.' It opposes acceptance of a bid for three parcels of land, calling the proposed transaction 'not even marginally reasonable.'
"According to the committee's filing, five qualified bids were received for Cincinnati-based Brown Publishing's assets. One bidder was Brown Media Corp., controlled by for Brown Publishing chief Roy Brown and two of his executives. The other bidders were not identified, but the objection notes that the auction resulted in an agreement to four separate transactions with two purchasers. One transaction would be solely for real estate assets."
In its objection to the sale, the committee said, "In the closing moments of the auction on July 20, 2010, the Debtors' counsel who conducted the auction, announced that the debtors would entertain offers for the Debtor's owned real property. Brown Media offered $10,000 in total plus any taxes owned for the three properties, said to be in Xenia, Bellevue and Urbana, Ohio."
Rosenberg also reports that "Windjammer Mezzanine and Equity Fund II L.P. on July 20 filed a limited objection to the proposed sale of bankrupt Brown Publishing Co. assets based on what it says was the debtors' failure to file notice with the court identifying the successful bidder and appending a copy of that bidder's asset-purchase agreement. Windjammer is a minority shareholder in Brown Publishing. The U.S. Bankruptcy Court for the Southern District of New York entered the sales procedure order on the motion of the debtors. The auction was to take place July 19, with objections filed July 20.
"Windjammer stated that no filing had appeared on the relevant Web-accessible databases and that the debtors refused to respond to inquiries concerning the successful bidder's identity. The objection describes a situation in which the debtors require that objection to the proposed asset sale be made before the identity of the buyer and terms of the purchase could be known by potential objectors.
"'This does not comport with due process, fundamental fairness, or common sense,' Windjammer argues, adding that the debtors' refusal to reply to requests for the information suggested 'a deliberate effort to gain some perceived tactical advantage.'" Brown Publishing owns The Times-Gazette and County Shopper in Hillsboro, as well as newspapers in surrounding counties, including: The Wilmington News Journal and Star Republican, The Record Herald in Washington C.H., The People's Defender in West Union, The News Democrat in Georgetown and The Ripley Bee.
For more information, go to www.editorandpublisher.com.
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