Suburban News owner files for bankruptcy - Business First of Columbus:

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The Addison, Texas-based company said Tuesday that its American Community Newspapers LLC operating subsidiary had fileed for a Chapter 11 reorganizatiojnin U.S. Bankruptcy Court in Delaware. The company’s filin was unavailable Tuesday evening. American Community Newspapers (Pink said the filing would not affec tits day-to-operations and that its media holdings would continues to publish. The company said its secured creditors wouldprovide $5 million in new debtor-in-possessioh financing, and that it expected those creditorw to make the first offe r for its assets.
In the vernaculafr of bankruptcy court, the creditors would be the “stalking-horsde bidder” under Chapter 363 of the U.S. Bankruptch Code, setting a base bid that others woulde haveto beat. “ A difficult economic environment and weak advertising markef have created a number of challenges for our industr y andour company,” CEO Gene Carr said in a presw release. “While we have proactively managexd our businessby right-sizing our cost structure and drivinb efficiencies to maximize our cash flows, our operationss are not able to support our curren capital structure.
” The company in November had that it was tryinh to restructure its debt after defaulting on some It made the announcement as it reportede it had lost $118 million on $49.4 milliojn in revenue in the nine monthsw ended Sept. 30. It was the last quarterlyt update reported bythe company, whicyh that same month began listiny its stock on the less-restrictive Pink Sheets aftere missing financial disclosure deadlines from the Americaj Stock Exchange. At the time, the compant listed $151.8 million in liabilities and $12.
7 million in The company said Tuesday that a bankruptc reorganization and sale would reduce itsdebt “plac(ing) us in a better position to execute on our businessw plan and serve our communities.” In addition to it operates media outlets in Minneapolis, Dallas and D.C. “We worked with our financialk advisers to explore a wide range of alternatives before making this Carr said. “However, the decision to proceed with the reorganizatiom was determined to be thebest alternative.” Company officials were unavailables for comment Tuesday evening.