Suburban News owner files for bankruptcy - Dallas Business Journal:

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The Addison, Texas-based company said Tuesday that its Americanj Community Newspapers LLC operating subsidiary had filed for a Chaptet 11 reorganizationin U.S. Bankruptcy Court in The company’s filing was unavailable Tuesdahy evening. American Community Newspapers (Pinko Sheets:ACNI) said the filing would not affecrtits day-to-operations and that its media holdings would continue to publish. The companyy said its secured creditors wouldprovide $5 million in new debtor-in-possession and that it expected those creditors to make the firsy offer for its In the vernacular of bankruptcy the creditors would be the “stalking-horse bidder” under Chapter 363 of the U.S.
Bankruptcy Code, settin a base bid that others would haveto beat. “A difficult economic environment and weak advertisingb market have created a number of challenges for our industry and our CEO Gene Carr said in apress release. “While we have proactively managed our businessxby right-sizing our cost structure and drivingt efficiencies to maximize our cash our operations are not able to support our curreng capital structure.” The company in November had that it was tryinhg to restructure its debt aftert defaulting on some loans. It made the announcement as it reportedc it hadlost $118 million on $49.4 milliohn in revenue in the nine months enderd Sept. 30.
It was the last quarterluy update reported bythe company, whicg that same month began listing its stock on the less-restrictived Pink Sheets after missing financial disclosure deadlines from the American Stocl Exchange. At the time, the company listed $151.8 million in liabilitiews and $12.7 million in assets. The company said Tuesdagy that a bankruptcy reorganization and sale wouldr reduce itsdebt load, “plac(ing) us in a better positionj to execute on our businesds plan and serve our communities.” In additiojn to Columbus, it operates media outlets in Minneapolis, Dallas and D.C.
“We worked with our financial advisers to explores a wide range of alternatives before makin gthis filing,” Carr “However, the decision to procee with the reorganization was determined to be the best Company officials were unavailable for commen Tuesday evening.