Joel R. Glucksman
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Newspapers have been the kings of information distribution for hundreds of years, but now that “ink and paper” media are being forced by the information revolution to transition to online publishing, many are struggling to remain above water.
One of the most recent newspapers that hit hard times is the Free Lance-Star Publishing Co., which has filed for protection under Chapter 11 of the U.S. bankruptcy law, according to Bloomberg. The company owns two radio stations and websites, in addition to Virginia’s Free Lance-Star newspaper. Their bankruptcy filing listed assets and debt of more than $50 million.
Free Lance-Star’s financial troubles began after it secured a loan from BB&T Corp to build a printing plant seven years ago. The loan was purchased by Sandton this past June, which proceeded to inform the company it would be best to file for bankruptcy protection.
“Sandton also indicated that it desired to be the entity that obtained the company’s assets,” Free Lance-Star attorneys said in the filing. “With no better option available, the company agreed to work with Sandton.”
The Rowe family has owned Free Lance-Star for 130 years, but that will come to an end with the bankruptcy filing. Free Lance-Star’s attorneys filed a motion in U.S. District Court to allow the company to run its operations as a debtor-in-possession during the Chapter 11. Judge Kevin Huennekens is expected to approve the motion, which means that business will continue as usual, at least for the present according to Fredericksburg.com.
FLS publisher Nick Cadwallender told Fredericksburg.com that the filing isn’t expected to have an immediate impact on any of the company’s employees, customers, advertisers, or vendors. The newspaper and digital products are expected to be created and delivered normally, and the company’s radio station will continue with regular programming.
Whether the “ink and paper” will remain after the dust clears has yet to be determined.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights, Bankruptcy Litigation
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