24 Aug 2010 10:53:27
Now the insiders try to complete its bankruptcy auction purchase of the Ohio-based newspaper chain Brown Publishing Co but they cannot do it because the group's lender withdrew, the company said in a court filing.
Last month in New York a federal bankruptcy judge ruled that the newly formed Brown Media Corp., led by current Brown Publishing president and CEO Roy Brown, could buy the majority of the chain for $22.4 million.
The company said in a court filing Friday in U.S. Bankruptcy Court for the Eastern District of New York that Brown Media Corp. on Aug. 18 had confirmed it "lacked the financial ability to close at this time" because "its lender has withdrawn." The lender was not identified in the court filing.
The filing said that Brown Publishing has begun discussions with PNC Bank as the next highest bidder and believes it "will be in a position to close an asset sale transaction with PNC."
PNC, which led the group of the chain's senior creditors, has said it hopes to close no later than Sept. 3, the filing said. PNC spokesman Pat McMahon said Monday that he could not comment beyond the court filing.
The filing did not indicate how much PNC bid for the chain.
Brown Publishing also asked the court to allow it to continue using cash collateral to operate through Sept. 3. The company said it would be forced to shut down operations if the court does not authorize continued use of the cash collateral.
The sale involves assets in Ohio, New York, Texas, South Carolina, Illinois, Iowa, Colorado, Utah, Arizona and Wyoming.
Messages were left for Brown Publishing attorneys and at the company's offices in Blue Ash, outside Cincinnati.
Now the insiders try to complete its bankruptcy auction purchase of the Ohio-based newspaper chain Brown Publishing Co but they cannot do it because the group's lender withdrew, the company said in a court filing.
Last month in New York a federal bankruptcy judge ruled that the newly formed Brown Media Corp., led by current Brown Publishing president and CEO Roy Brown, could buy the majority of the chain for $22.4 million.
The company said in a court filing Friday in U.S. Bankruptcy Court for the Eastern District of New York that Brown Media Corp. on Aug. 18 had confirmed it "lacked the financial ability to close at this time" because "its lender has withdrawn." The lender was not identified in the court filing.
The filing said that Brown Publishing has begun discussions with PNC Bank as the next highest bidder and believes it "will be in a position to close an asset sale transaction with PNC."
PNC, which led the group of the chain's senior creditors, has said it hopes to close no later than Sept. 3, the filing said. PNC spokesman Pat McMahon said Monday that he could not comment beyond the court filing.
The filing did not indicate how much PNC bid for the chain.
Brown Publishing also asked the court to allow it to continue using cash collateral to operate through Sept. 3. The company said it would be forced to shut down operations if the court does not authorize continued use of the cash collateral.
The sale involves assets in Ohio, New York, Texas, South Carolina, Illinois, Iowa, Colorado, Utah, Arizona and Wyoming.
Messages were left for Brown Publishing attorneys and at the company's offices in Blue Ash, outside Cincinnati.
