Thursday, August 20, 2009

Debtors, Creditors, Sun-Gazette's Parent Company Face Off in Federal Bankruptcy Court on August 21st

According to motions filed with the Federal District Bankruptcy Court in Wilmington Delaware, the SG's parent company, American Community Newspapers LLC (Debtors) will argue for a conversion from Chapter 11 to Chapter 7. The Official Committee of American Community Newspapers et.al. Unsecured Creditors will argue a motion for the dismissal of the Debtor's Chapter 11 cases. Two large secured creditors, General Electric Credit and Bank of Montreal, and American Community Newspapers LLC, will all argue against dismissing Debtors' Chapter 11 cases. The amount American Community newspapers owed its secured creditors was approximately $111 million.

33 Comments:

At 20 August, 2009 , Anonymous former ACN employee said...

Well, what did they expect? The small businesses that are the unsecured creditors were told "don't worry, be happy, we're working it out with our lenders" until the day ACN went bankrupt.

 
At 20 August, 2009 , Anonymous Joe Lawyer said...

The secured creditors now own ACN LLC and want to avoid paying what ACN LLC owes the unsecured creditors, small businesses who cleaned offices, provided temporary workers, etc., while getting as much of the company's revenue and assets for themselves. Typical bankruptcy case.

 
At 21 August, 2009 , Anonymous Media Investor said...

How about ACN's shareholders, who lost a ton of money? From what I can determine American Community Newspapers was/is a management disaster zone.

 
At 21 August, 2009 , Anonymous ACN insider said...

The management disaster zone continues. The CEO and the leadership that got ACN in this mess are somehow all still there without even a cut in salary. Morale is at an all-time low and employees are hitting the revolving door. The story is the same at every failing newspaper, too much salary is wastefully locked up in management while the newsroom has been butchered. They can't understand their own product and what makes it succeed.

 
At 21 August, 2009 , Anonymous Anonymous said...

Who are the major secured creditors, besides General Electric Credit and Bank of Montreal?

 
At 21 August, 2009 , Anonymous 2100 said...

Well, ACN Insider, it's pretty pathetic when a local newspaper no longer reports the local news, but mainly the editor's pet interests.

 
At 21 August, 2009 , Anonymous Media Investor said...

Hmmm.... Looks like ACN's senior secured creditor is General Electric Credit. Looks like ACN's CEO is paid about $300,000 a year.

 
At 21 August, 2009 , Anonymous M and A Guy said...

Looks to me like ACN LLC is going into the mergers and acquisition business. The newspaper publishing may become a sideshow. ACN Inc. is now a blank check company.

 
At 21 August, 2009 , Anonymous Sheesh said...

General Electric isn't in enough financial difficulty because of General Electric Credit, now GE is funding mergers and acquisitions among bankrupt media corporations? Sheesh.

 
At 21 August, 2009 , Anonymous Anonymous said...

ACN ran up big bills with their major print suppliers, starting with $372,000 owed to Gannett which prints the Sun Gazette. Then ACN declared bankruptcy after telling it's suppliers - don't worry, we have a great relationship with our lenders. They sure do.

 
At 22 August, 2009 , Anonymous Don said...

No wonder Scotty ignores major news and reports trivia.

 
At 22 August, 2009 , Anonymous former ACN employee said...

When ACN's lenders bought ACN they "transferred" a number of ACN employees to the mew LLC and gave them a bonus. Other ACN employees were told to find other employment.

ACN's unsecured creditors and former shareholders are really pissed.

 
At 22 August, 2009 , Anonymous Anonymous said...

So are we - another former ACN employee.

 
At 22 August, 2009 , Anonymous Tony said...

So, American Community Newspapers's secured lenders lend ACN management a lot of money and ACN management tells the hundreds of unsecured creditors that everything is cool with the company, then ACN's secured lenders suddenly pull the plug and the company declares bankruptcy and the company is reorganized into an LLC owned by the secured lenders with the same CEO? And the secured creditors keep all ACN's assets (advertising contracts) while divesting their LLC of debt owed the unsecured creditors through bankruptcy? And now the secured creditors are reorganizing ACN into a media M & A corporation?

Is that legal?

 
At 22 August, 2009 , Anonymous Joe Lawyer said...

Happens all the time.....

 
At 22 August, 2009 , Anonymous another former ACN employee said...

If you reasonably believe ACN's senior management conspired with ACN's senior lenders to defraud ACN's unsecured lenders and shareholders you can contact the Justice Department's bankruptcy fraud hotline:
ustp.bankruptcy.fraud at usdoj.gov

 
At 22 August, 2009 , Anonymous Anonymous said...

Sun Gazette Editor Scott McCaffrey got a big bonus for transferring his employment to General Electric - American Community Newspapers LLC Media Mergers & Acquisitions.

 
At 22 August, 2009 , Anonymous Anonymous said...

Jay Fisette LLC is a wholly-owned subsidiary of General Electric Credit - American Community Newspapers LLC.

 
At 23 August, 2009 , Anonymous Rich said...

Wonder if the reason the SG is so lame is because Scotty has to run all the news and opinion through G.E. Corporate Communications?

 
At 24 August, 2009 , Anonymous L.P. said...

People, do not, DO NOT take anything the Sun Gazette prints seriously, especially the SG's endorsements of the republicratic candidates for elected office in November which were decided months ago. This is a newspaper that will give space to any kind of green gimmick, like "green asphalt" but totally ignores any real environmentally responsible program like renewable solar energy installed on public buildings.

 
At 25 August, 2009 , Anonymous Paul / Arlington said...

None of the newspapers nor other media care about anything but advertising revenue. There is no investigative journalism - that might offend advertisers. Editorials are bland for the same reason. After 8 years in Afghanistan the media is going to call upon us to "support our troops" by sending more troops into Afghanistan. Let's not offend our neo-con advertisers.

I, for one, am tired of "supporting our troops" in one prolonged third conflict after another, which have been occurring regularly for the past 50 years. Our country has plenty of money for wars, but nothing for infrastructure, health care, or much of anything else for a nation of 310 million. And BTW, it appears that the next census will find America's population increased by more than 65 million between 1990 and 2010. We're taking care of everyone else's problems but our own. Can we have a thread on this topic as we approach 9-11?

 
At 29 August, 2009 , Anonymous Anonymous said...

Latest regarding the American Community Newspaper bankruptcy is that ACN gets to keep and enforce all its advertising contracts. Creditors get nothing. Scott McCaffrey is a big shot at the Arlington Chamber of Commerce. ACN walked away from millions in debts to small businesses.

 
At 01 September, 2009 , Anonymous Anonymous said...

ACN LLC also got out of all its contracts with suppliers and leases.

 
At 03 September, 2009 , Anonymous Anonymous said...

Does anyone have hard sources for the info on the ACN/Sun Gazette financial dealings? Some inquiring minds want to know

 
At 03 September, 2009 , Anonymous A.Y. said...

Info comes from motions filed and decisions rendered by the Federal District Bankruptcy Court in Wilmington Delaware.

 
At 03 September, 2009 , Anonymous Anonymous said...

Go to ACN's Web site. ACN is a profit center and a media takeover blank check company for General Electric.

 
At 03 September, 2009 , Anonymous former ACN employee said...

Want info? Ask Jill Carabelli, who signed the agreement by General Electric Capital Corporation to purchase ACN.

 
At 03 September, 2009 , Anonymous another former ACN employee said...

ACN's Management SUCKS. Scott McCaffrey got a big bonus for becoming a shill for the Arlington Chamber of Commerce and General Electric. Laid-off ACN employees get a few months of severance pay and COBRA.

 
At 03 September, 2009 , Anonymous Media Investor said...

Ask ACN's former shareholders and unsecured creditors who were repeatedly assured by ACN's Board members: "Don't worry, be happy, we're working with our senior secured lenders."

 
At 04 September, 2009 , Anonymous Small Business Owner said...

I'm an unsecured ACN creditor.

Please note the following if you are interested in information about American Community Newspapers Inc. / American Community Newspapers LLC.

The Chapter 11 - Chapter 7 case is in the United States Bankruptcy Court for the District of Delaware, (302) 252-2900, Chief Judge Kevin J. Carey presiding. Next hearing is scheduled for September 18th. Case Number is 09-11446 (KJC).

Debtor's Attorney's are William Chipman Jr., Landis, Rath & Cobb, LLP, Wilmington DE (302) 467-4400 and Kenneth A. Rosen, Lowenstein & Sandler PC, Roseland NJ, (973) 597-2500.

Secured Lenders' attorneys are Eric Schwartz, Morris, Nichols, Arsht, and Tunnell, LLP, Wilmington DE (302) 658-9200 and Randall Klein, Goldberg, Kohn, Bell, Black, Rosenbloom, and Moritz, Ltd, Chicago, Il (312) 201-4000.

Unsecured creditors' committee attorney is David Carickhoff, Blank Rome, LLP, Wilmington DE, (302) 425-6400.

United States Trustee attorney is Mark Kenney, Caleb Boggs Federal Building, Wilmington DE, (302) 573-6491

Jill Carabelli is Managing Director of General Electric Capital Corporation, Chicago Il, (312) 441-6757

 
At 04 September, 2009 , Anonymous former ACN employee said...

This so-called "bankruptcy" case seems to be a continuing scam by ACN's long-time management on the sucker shareholders who bought stock when ACN went public and then they lost everything, on the small businesses who lost when ACN declared bankruptcy, and on the federal bankruptcy court. ACN's management (now part of General Electric Capital Corporation) admits on ACN's Web site that ACN-GE is an M & A operation. Obviously GE and ACN played charades with unsecured creditors, employees, everyone, for months before engineering a so-called "bankruptcy".

 
At 04 September, 2009 , Anonymous Sue said...

I left this company when the Phillips family sold it to a bunch of wheeler-dealers. Happy I left.

 
At 05 September, 2009 , Anonymous Anonymous said...

The Editors of the newspapers published by this gang of f-ing pirates constantly lecture everyone about our "civic responsibilities." What a crock of s---.

 

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