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Former Brown Publishing executives seek almost $3 million

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A trio of top executives from the now-defunct Brown Publishing Company are seeking almost $3 million in severance packages, according to a report by The Bellefontaine Examiner.

Former Brown Publishing Co. "president and CEO Roy Brown claims he is owed three years of his annual $400,000 salary and $83,000 in deferred salary prior to the bankruptcy filing and subsequent reorganization in 2010," the Examiner said.

Former BPC vice president Joel Dempsey is seeking just over $1 million, while former BPC chief financial officer Joseph Ellingham is asking for $525,800, according to the newspaper.

As reported in September 2010, Brown Publishing Co.’s bank lenders took over the Ohio-based newspaper chain under an order signed Friday, Sept. 3, 2010 by the judge overseeing its bankruptcy case, Judge Dorothy Eisenberg, in Central Islip, N.Y.

When Brown Publishing filed for bankruptcy in May 2010, it declared liabilities of $104.6 million and said its properties had a book value of $94.1 million.

Brown, Dempsey and Ellingham then formed Brown Media in an attempt to regain control of the company for $22.4 million. That deal fell through, however, and Ohio Community Media LLC – a corporation formed by the banks owed $74 million by Brown Publishing – purchased nearly all Brown Publishing’s assets for $21.75 million in the form of a credit bid, that is, using some of the debt the banks are owed rather than cash, Editor & Publisher reported last year.

Prior to the bankruptcy, Brown Publishing had been the owner 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. District Court Judge Dorothy T. Eisenberg, of the Eastern District of New York, has scheduled a hearing date for May 17, 2011, according to the U.S. Bankruptcy Court – Eastern District of New York.[[In-content Ad]]

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