By: E&P Staff Sun-Times Media Group (STMG), which looking to sell its flagship Chicago Sun-Times and dozens of community papers, has stopped bleeding cash since entering Chapter 11 bankruptcy protection, its chairman, Jeremy Halbreich, says.
In a lengthy article on the company in the rival Chicago Tribune Thursday, Halbreich said STMG has actually added some $4.5 million to its cash reserves since filing for bankruptcy March 31. At the time it filed, it said it had drawn down its cash reserves an average $4.5 million a week, or $58 million in total, since Dec. 31. Even with the positive cash flow, the reserve is a relatively low $25.5 million, the article by Tribune business writers Michael Oneal and Julie Johnsson reports.
STMG is offering a so-called 363 sale, permitted under bankruptcy law, that allows a buyer to buy just a company's assets, with the liabilities settled from proceeds of the sale. STMG's principal liability is a tax bill that could be as high as $600 million, a legacy of its past leadership under Conrad M. Black, who is serving a sentence in federal prison on fraud convictions related to newspaper sales the company made.
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