Judge OKs sale of bankrupt Brown to...Brown
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Judge OKs sale of bankrupt Brown to…Brown
U.S. Bankruptcy Court Judge Dorothy Eisenberg ruled Thursday, July 29 in favor of the $26 million sale of Ohio-based newspaper chain Brown Publishing Co. to a group of company insiders led by current President and Chief Executive Roy Brown and two of his top executives, The Associated Press reported.
Eisenberg ruled that Brown Media Corp. could purchase the majority of the Brown Publishing Company chain for $22.4 million and also approved the purchase of two of Brown's Ohio newspapers, the Van Wert Times and the Ada Herald, to Delphos Herald, Inc., the AP said.
Eisenberg reject the sale of three real estate parcels in Ohio. Brown Media was the lone bidder on the properties, offering $10,000 for parcels in Urbana, Xenia and Bellevue, according to reports.
These properties were valued at several hundred thousand dollars, and Eisenberg said they had not been properly marketed for the highest possible sale price.
According to Bloomberg News (www.bloomberg.com), "The official committee of creditors with unsecured claims opposed the real estate sale, claiming that Brown accepted the $10,000 bid for three parcels even though they might be worth more than $555,000.
"Shareholder Windjammer Capital Investors LLC also opposed the sale."
Windjammer sued Brown Publishing in 2009.
Brown Publishing Co. filed for Chapter 11 bankruptcy relief earlier this year.
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.
U.S. Bankruptcy Court Judge Dorothy Eisenberg ruled Thursday, July 29 in favor of the $26 million sale of the bankrupt Ohio-based newspaper chain Brown Publishing Co. to a group of company insiders led by current President and Chief Executive Officer Roy Brown and two of his top executives, The Associated Press reported.
Eisenberg ruled that Brown Media Corp. could purchase the majority of the Brown Publishing Company chain for $22.4 million and also approved the purchase of two of Brown's Ohio newspapers, the Van Wert Times and the Ada Herald, to Delphos Herald, Inc., the AP said.
Eisenberg rejected the sale of three real estate parcels in Ohio. Brown Media was the lone bidder on the properties, offering $10,000 for parcels in Urbana, Xenia and Bellevue, according to reports.
These properties were valued at several hundred thousand dollars, and Eisenberg said they had not been properly marketed for the highest possible sale price.
According to Bloomberg News (www.bloomberg.com), "The official committee of creditors with unsecured claims opposed the real estate sale, claiming that Brown accepted the $10,000 bid for three parcels even though they might be worth more than $555,000.
"Shareholder Windjammer Capital Investors LLC also opposed the sale."
Windjammer sued Brown Publishing in 2009.
Brown Publishing Co. filed for Chapter 11 bankruptcy relief earlier this year, claiming more than $90 million in debt, according to The Dayton Daily News and other reports.
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.
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