Brown Publishing files for bankruptcy
Last Updated: 18:16 March 28, 2012
CINCINNATI - The parent company of the Boulder County Business Report filed for Chapter 11 bankruptcy April 30.
Cincinnati-based Brown Media Holdings, Brown Publishing Co. and related subsidiaries filed its request for protection in U.S. Bankruptcy Court for the Eastern District of New York.
Brown seeks to sell substantially all of its assets to a bidder supported by the companies' management. The sale would involve all of the companies' assets in Ohio, Colorado, New York, Texas, South Carolina, Illinois, Iowa, Utah, Arizona and Wyoming.
Other subsidiaries named in the filing include Boulder Business Information LLC, Utah Business Publishers LLC, Texas Business News LLC, Texas Community Newspapers Inc. and Upstate Business News LLC.
Brown purchased Boulder Business Information, owner of the Boulder County Business Report, in February 2008. BBI is also part owner of the Northern Colorado Business Report and the Wyoming Business Report, but neither of those publications are affected by the bankruptcy.
"Today's decision to sell was made to help assure that the businesses involved are best positioned to prosper in the years ahead," Roy Brown, chief executive of Brown Media Holdings, said in a press release.
Initial documents filed late Friday list secured debt of $94 million,
held by two banks, PNC Bank in Philadelphia and Wilmington Trust Co. in
Boston. The bidder is expected to assume a "substantial portion" of that
debt, according to the press release.
Brown has asked for court approval of several motions, including $2.5
million of debtor-in-possession financing, use of cash collateral,
maintenance of employee payroll and health benefits, and continuation of
the companies' cash-management systems. Granting those motions would
enable the companies to continue to operate as normal pending the sale,
the press release stated.
Boulder County Business Report publisher Christopher Wood said the publication, founded in 1982, is experiencing strong growth in print, online and event sales, despite the bankruptcy filing by the corporate parent.
For more information, contact Joel Dempsey, corporate counsel for Brown, at 513-794-5049.
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