Magazine article Editor & Publisher

And Then There Were 7: American Community Newspapers Files for Bankruptcy

Magazine article Editor & Publisher

And Then There Were 7: American Community Newspapers Files for Bankruptcy

Article excerpt

American Community Newspapers (ACN) -- publisher of the Stillwater (Minn.) Gazette and Plano (Texas) Star Courier plus dozens of non-dailies in four states -- said late Tuesday it had filed for Chapter 11 bankruptcy protection.

Under the prepackaged bankruptcy, ACN's secured creditors will be providing a $5 million debtor in possession credit facility.

The creditors are the "contemplated stalking horse bidder for ACN's assets," ACN said.

ACN said that, with the support of its lenders, it will reorganize under the so-called 363 sale process, which will free the newspapers and other properties of the debt that makes them unattractive buys.

"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.

ACN becomes the seventh newspaper publisher to file for bankruptcy since December 2008 when Tribune Co. …

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