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More Newspaper Bankruptcies
From ‘Newspapers & Technology’ Dateline newsletter:
2 more publishers file for bankruptcy protection
American Community Newspapers Inc.’s bankruptcy could cost Gannett Co. Inc. hundreds of thousands of dollars.
Gannett’s printing group, owed $273,000, was listed as ACN’s largest unsecured creditor, according to the filing. ACN filed for bankruptcy protection April 28, citing a weak advertising market, according to Gene Carr, ACN’s chairman and chief executive officer. The Dallas-based publisher prints more than 80 newspapers — primarily weeklies — in four markets: Dallas, northern Virginia, Minneapolis-St. Paul and Columbus, Ohio. The firm said it had obtained $5 million in debtor-in-possession financing. The publisher listed assets in the range of $50 million to $100 million and debts of about $107 million.
Meantime, the family-owned Columbian Publishing Co. in Vancouver, Wash., filed for bankruptcy protection in order to address credit issues with the Bank of America. The company borrowed money from the bank to finance a new building in downtown Vancouver. According to filings, CPC owes $17 million to BofA as well as other unsecured creditors.
CAN and CPC are the sixth and seventh newspaper publishers to file for bankruptcy protection, following Tribune Co., Philadelphia Newspapers LLC, the (Minneapolis) Star-Tribune, Journal Register Co. and the Sun-Times Media Group.
The decimation continues….