American Community Newspapers files for bankruptcy
Posted by Simon Day on April 30, 2009 at 5:31 AM
American Community Newspapers, publisher of smaller newspapers across four U.S. markets including the Still Water Gazette in Minneapolis and Plano Star Courier in Texas, announced on Tuesday that it has filed for Chapter 11 bankruptcy protection, Editor & Publisher reported Wednesday.
"While we have proactively managed our business by right sizing our cost structure and driving efficiencies to maximizing our cash flows, our operations are not able to support our current capital structure," Chairman and CEO Gene Carr said in a prepared statement.
"While we have proactively managed our business by right sizing our cost structure and driving efficiencies to maximizing our cash flows, our operations are not able to support our current capital structure," Chairman and CEO Gene Carr said in a prepared statement.
The filing lists assets valued between US$50 million to $100 million with debt at around $107 million. Last Autumn ACN was delisted from the American Stock Exchange after its stock sat at only 1 cent per share, E&P reported.
ACN publishes 86 newspapers in Dallas, Minneapolis, Columbus, Ohio and Northern Virginia areas, according to an Associated Press article Wednesday.
ACN said its secured creditors would provide a $5 million debtor in possession creditor facility. The creditors are the "contemplated stalking horse bidder for ACN's assets," ACN stated. With this lending support, ACN will attempt to reorganise its debt under the 363 sale process, freeing its newspapers and other properties from debt, E&P reported.
ACN became the seventh U.S. newspaper publisher in six months to seek bankruptcy protection. The Dallas-based company said the filing will cause "no change in the company's day to day operating activity."
ACN publishes 86 newspapers in Dallas, Minneapolis, Columbus, Ohio and Northern Virginia areas, according to an Associated Press article Wednesday.
ACN said its secured creditors would provide a $5 million debtor in possession creditor facility. The creditors are the "contemplated stalking horse bidder for ACN's assets," ACN stated. With this lending support, ACN will attempt to reorganise its debt under the 363 sale process, freeing its newspapers and other properties from debt, E&P reported.
ACN became the seventh U.S. newspaper publisher in six months to seek bankruptcy protection. The Dallas-based company said the filing will cause "no change in the company's day to day operating activity."
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