Date

Thu - 21.09.2017


bankruptcy

IRex Technologies, maker of the e-reader iLiad, has filed for bankruptcy, reports paidContent. The company, which began selling the iRex DR800SG in February, reports that sales of the device have been below expectations.

The DR800SG had received a good deal of attention for it's unique model, which gave publishers more control over the distribution of their content. Unlike Amazon's Kindle, iRex's device allowed for publishers to set their own prices. Moreover the company, which does lack brand recognition by consumers, has distribution agreements with both Best Buy and Barnes and Noble.

Author

Leah McBride Mensching

Date

2010-06-11 19:18

Canwest Global Communications Corp. announced the C$1.1 billion (US$1.06 billion) sale of its newspaper unit to a group led by Canadian media executive Paul Godfrey has been approved, Bloomberg Businessweek reported.

According to a company statement, the deal, sanctioned by Ontario Superior Court Judge Sarah Pepall, will offer jobs for all of the publisher's full-time employees as well as "substantially all" of its part-time staff.

The group led by Godfrey, former chief executive officer of the National Post newspaper, won a court- monitored auction last week, beating lenders from Bank of Nova Scotia and from Torstar Corp. Another bid, from an unidentified group, was also denied, according to papers filed by FTI Consulting.

This approval marks the end of the auction process which started in January, when the newspaper operation filed for bankruptcy.

Author

Erina Lin

Date

2010-05-18 22:21

Brown Publishing Co., the publisher 15 dailies and a number of weeklies mainly in Ohio, filed for bankruptcy due to advertising decline in real estate market, according to the Bloomberg's article posted on Business Week.

Brown, based-in Cincinnati, filed for reorganization on April 30. According to its statement, the private-held company and 14 affiliates had assets of $94.1 million and $104.6 million in debts as of March 31. The company is suffered from a drop in retail advertising in Ohio, as well as Dan's Paper's ad downturn affected by real estate market, said Chief Executive Officer Roy Brown in a court filing.

"Over the past two years, our employees have battled the effects of an unprecedented economic and financial crisis with inspirational grit and determination," Brown added. "It is with their interests pre-eminently in mind that we have pursued this course," Media Bistro reported.

The company's affiliates include Delaware Gazette Co., Texas Business News LLC and Utah Business Publishers LLC, according to the article posted on SFGate.

Author

Erina Lin

Date

2010-05-03 23:22

Philadelphia's two main daily newspapers are looking for a new owner as part of a plan to settle US$318 million in debt.

The Philadelphia Inquirer reported Wednesday that an auction is set for next week for Philadelphia Newspapers LLC, the parent company of the Inquirer, which also owns the Philadelphia Daily News and Philly.comA bankruptcy judge on Tuesday extended the period during which the company can offer a plan to reorganise to April 30. The extension will give the company time to complete the auction scheduled for next Tuesday and potentially declare a new owner, according to the Inquirer.

"The auction is central to the company's plan to settle $318 million in debt to its senior lenders, who include Angelo, Gordon & Co., the CIT Syndicated Loan Group, Credit Suisse, and Eaton Vance Management," the paper states in the article. "The company will be sold at the auction, with the proceeds ultimately going toward the debt."

The Associated Press on Wednesday reported housing executive Bruce Toll, a previous investor in Philadelphia Newspapers LLC, and other local investors have made the only bid for the company, according to ABC News.

Author

Leah McBride Mensching

Date

2010-04-21 20:05

Canwest Global Communications Corp. has won an extension of bankruptcy protection until June 30 for its newspaper division. This will allow the company to complete an auction for the publications, Bloomberg reported.

The extension was granted by Ontario Superior Court Judge Sarah Pepall Tuesday in Toronto. The bankruptcy protection was first granted on Jan. 8, and due to expire on April 14.

According to court documents, Canwest Global are willing to sell the newspaper division to a group of banks for $828 million of debt in return, unless there is a higher cash bid or an offer acceptable to the lenders. Qualified bidders are now under research process, according to court documents.

Canwest lawyer Lyndon Barnes said at today's hearing that "at this stage, we don't know whether the company will get a better offer", Bloomberg reported.

Author

Erina Lin

Date

2010-04-13 23:22

Tribune Co.'s recent bankruptcy exit plan has been harshly criticised by creditors such as Oaktree Capital Management, Goldman Sachs Loan Partners and Marathon Asset Management, who said that it was "impossibly tainted by the Debtors' attempt to give a free pass to their insiders. And it is not a settlement that has the approval or agreement of the lion's share of the entities being asked to fund it," Variety reported today.

The reorganisation plan permits Tribune Co., which belongs to Sam Zell (left), to keep its newspapers and broadcast stations as it eases the group's Chapter 11 bankruptcy, reported the Boston Globe. If the plan receives approval then Tribune Co. will hand over ownership to lenders JPMorgan Chase & Co and Angelo, Gordon & Co.

The afore-mentioned creditors would be releasing more than US$400 million in value to bondholders and other unsecured creditors. Under the plan, Tribune Co.'s board would be "released for free, without any payment or consideration, accompanied by unlimited indemnities from the reorganized enterprise," the Variety article stated. According to the Globe, these creditors require to be paid $3.6 billion.

Author

Alisa Zykova

Date

2010-04-13 17:36

The UK branch of Reader's Digest was rescued from bankruptcy by private equity company Better Capital through a £13 million management buyout, reported Business Week Friday. The move saved 117 jobs, according to The Independent.

"The iconic magazine and prize draw will continue but it should be remembered that these are just a part of a much larger business," said the outlet's Managing Director Chris Spratling. "There are tremendous opportunities for our businesses in financial services, books and health care and significant plans to expand all aspects of the Reader's Digest business in the U.K."

The Telegraph pointed out that Better Capital, owned by tycoon Jon Moulton, wouldn't be dealing with the magazine's £125 million-plus pension fund debt, with Moulton stating that there could not be a "good deal" for that particular fund. Moulton also warned that there may be more financial collapses caused by pension funds.

Author

Alisa Zykova

Date

2010-04-12 12:02

U.S. newspaper publisher Tribune Company announced yesterday it has come to an agreement with creditors that will see it exit bankruptcy protection later this year, Reuters reported today.

According to the plan, the company will emerge fron bankruptcy "significantly deleveraged, with its business units intact and with adequate liquidity for operating and capital needs," the company said in a statement. The Tribune Co., which publishes the Chicago Tribune and Los Angeles Times, filed for bankruptcy in December 2008.

The plan shows that creditors have "agreed to wipe out much of Tribune's roughly US$13 billion in debt," and in return will own the media company, according to the Wall Street Journal.

Real estate mogul Sam Zell took the company private in December 2007, and in doing so, brought the company's debt load to more than $12 billion. Although Tribune kept up with payments on the $12 billion debt incurred from going private, sliding ad sales and circulation, exacerbated by the poor economic climate, put the squeeze on the debt-heavy company.

Author

Leah McBride Mensching

Date

2010-04-09 23:31

MediaNews Group's holding company, the Denver-based Affiliated Media Inc., has emerged from bankruptcy, just six weeks after it filed to reorganise under Chapter 11, The Orange County Register reported today.

The reorganisation cut the company's debt to US$165 million, from $930 million, as secured lenders traded debt for an 89 percent stake in the company. CEO William Dean Singleton and President Joseph H. Lodovic IV now hold the remaining 11 percent and will continue controlling it.

Author

Leah McBride Mensching

Date

2010-03-22 18:38

The Asper family, former controller of Canwest Global Communications Corp., is trying to regain control of the newspaper assets, Bloomberg reported.

The family one of six bidders. Others include B.C. newspaper magnate David Black, Vancouver-based community newspaper publisher Glacier Media Inc. and National Post executive Paul Godfrey, the Globe and Mail reported.

CanWest newspaper unit filed for bankruptcy in January.

Bids for the unit were due March 5. According to the Globe, Canwest's creditors have been reviewing all the offers since then. The creditors are looking for at least C$950 million (US$925 million) for the business.

Author

Erina Lin

Date

2010-03-11 23:04

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