Business NEWS

Chicago investor group, led by banker James Tyree, submits bid for Sun-Times Media

By Amarendra Bhushan for CEOWORLD Magazine Updated:September 9, 2009

Publisher of the Chicago Sun-Times and 58 suburban newspapers, Sun-Times Media Group Inc., filed to reorganize under Chapter 11 of the U.S. bankruptcy laws and said it had retained Rothschild Inc. to begin the process of selling its assets.

The Chicago investor group, led by banker James Tyree, agreed to pay about $5 million in cash and assume $20 million worth of the Sun-Time’s liabilities. Tyree’s group would get the media company’s 59 newspapers and websites including the Chicago flagship tabloid paper. The deal still needs court approval.

Sun-Times Media Group is a newspaper publisher whose assets include 59 community newspapers in the Chicago area and their corresponding online sites, including the Chicago Sun-Times, the SouthtownStar, Beacon News, Courier-News, Herald News, Lake County News-Sun, Naperville Sun, Post-Tribune, and weeklies published by Pioneer Press and Fox Valley Publications. The company also publishes free shoppers and content on all of its corresponding online news sites and other sites such as YourSeason.com.

A Stalking-Horse bid is an initial bid on a bankrupt company’s assets from an interested buyer chosen by the bankrupt company. From a pool of bidders, the bankrupt company chooses the stalking horse to make the first bid, called the lead bidder. This method allows the distressed company to avoid low bids on its assets. Once the stalking horse has made its bid, other potential buyers may submit competing bids for the bankrupt company’s assets. However, it is unclear whether Sun-Times Media Group will have any other suitors, which has sought buyers for months, and has contacted more than 46 parties to gauge their interest.

Like this article! ‹ Verizon unveiled the Samsung Newest AMOLED Messaging Phone Rogue UCBH Holdings ousts CEO, COO, reaches deal with regulators ›
Share this Post: Get It Delivered To Your Inbox