Bankrupt 'Sun-Times' Parent Was Cash-Flow Positive in August

By: Mark Fitzgerald Sun-Times Media Group (STMG) reversed its crippling cash burn in August, according to a filing in U.S. Bankruptcy Court in Delaware.

The Chicago Sun-Times parent said it increased its cash balance to $21.239 million at the end of August from $19.256 million at the end of July.

STMG had been going through cash so rapidly that some outside observers warned it could run out of cash to operate before it closed its planned sale to Chicago financier James Tyree. The Mesirow Financial CEO has put together an investors group that has offered $5 million in cash and the assumption of about $20 million in liabilities for the chain of dailies and weeklies in the Chicago metro area. Tyree has warned the sale is contingent on big concessions by all STMG unions -- concessions several Newspaper Guild units, including the biggest one, at the Sun-Times, have rejected in recent votes.

Despite the fatter bank account, STMG operated at a loss for August. It did, however, show improvement, with the operating loss of $1.458 million for August less than half July's operating loss of $3.591 million. The net loss of $3.629 million in August was also an improvement on the July net loss of $4.314 million.

For the month, STMG said, it took in $19.256 million in receipts and paid out $17.317 million.


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