Owner of business weeklies to be sold to company formed by executives

Brown Publishing Co., the Ohio-based owner of a number of business newspapers across the country that filed for Chapter 11 bankruptcy court protection earlier this month, is proposing to sell its assets to a new company formed recently by its executives.

The Cincinnati Business Courier reports, “Terms of the proposed sale are outlined in an asset purchase agreement entered into by Brown Publishing and the new company, Brown Media Corp., on May 4, days after Brown filed a Chapter 11 petition for bankruptcy protection. Brown Media would pay $15 million under that agreement for substantially all of Brown Publishing’s assets, free and clear of all liens and claims.

“The proposed sale, which is subject to court approval, would be conditioned on the possible receipt of a higher bid at auction. Several claimants of Brown Publishing have filed objections to the proposed sale and auction procedures. A hearing on Brown’s motion to sell is scheduled for May 20.

“Brown Publishing is a Cincinnati-based chain of small-town newspapers and business weeklies. It owed about $105 million to creditors when a liquidity squeeze prompted it to file for bankruptcy protection on April 30, according to the company’s court filings. The book value of its assets at the time was about $94 million.”