Report: Auction for Brown Publishing papers set for July 19
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Report: Auction for Brown Publishing papers set for July 19
After unsecured creditors were in U.S. Bankruptcy Court in New York last week to "slow down an impending auction of Brown Publishing’s newspapers," an auction date has been set for July 19, according www.bloomberg.com.
"The opening bid of $15.9 million will come from a group including Roy Brown, the president and chief executive officer, of Brown Publishing," Bloomberg reported. "Other bids are due initially by July 16. The hearing for approval of the sale will take place July 22."
According to www.editorandpublisher.com, "Brown Media had made a so-called 'stalking horse' offer, the initial offer in a bankruptcy auction, of $15.3 million – for assets that would be free of debts and encumbrances. Brown’s Chapter 11 filing says the company has debt totaling $104.6 million."
Brown Publishing said its properties had a value of $94.1 million. PNC Bank, Brown Publishing’s biggest creditor and owed $70.5 million, has said it has offered $20 million for the newspaper chain.
"The Roy Brown group is required to make a 5 percent cash deposit to qualify as a bidder," Bloomberg said. "The secured lenders, with PNC Bank NA as agent, aren’t required to make a deposit and may bid secured debt rather than cash at the auction."
Brown 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.
After unsecured creditors were in U.S. Bankruptcy Court in New York last week to "slow down an impending auction of Brown Publishing’s newspapers," an auction date has been set for July 19, according to www.bloomberg.com.
"The opening bid of $15.9 million will come from a group including Roy Brown, the president and chief executive officer, of Brown Publishing," Bloomberg reported. "Other bids are due initially by July 16. The hearing for approval of the sale will take place July 22."
According to www.editorandpublisher.com, "Brown Media had made a so-called 'stalking horse' offer, the initial offer in a bankruptcy auction, of $15.3 million – for assets that would be free of debts and encumbrances. Brown’s Chapter 11 filing says the company has debt totaling $104.6 million."
Brown Publishing said its properties had a value of $94.1 million. PNC Bank, Brown Publishing’s biggest creditor and owed $70.5 million, has said it has offered $20 million for the newspaper chain.
"The Roy Brown group is required to make a 5 percent cash deposit to qualify as a bidder," Bloomberg said. "The secured lenders, with PNC Bank NA as agent, aren’t required to make a deposit and may bid secured debt rather than cash at the auction."
Brown 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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