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.