Wednesday, October 14, 2009

Unsecured Creditors Prevail Over Sun Gazette Parent's New Owners

On October 7th, Federal Bankruptcy Judge Kevin Carey concurred with American Community Newspapers LLC's unsecured creditors and dismissed Chapter 11 Bankruptcy proceedings. American Community Newspapers LLC is the parent company of the Sun Gazette newspapers, including the Arlington Sun Gazette. American Community Newspapers LLC was purchased by General Electric Capital Credit in June. The decision leaves General Electric Capital Credit and other secured creditors obligated to pay ACN's unsecured creditors certain pre-bankruptcy debts incurred by ACN LLC and ACN Inc.

18 comments:

Don said...

What happened? Unsecured creditors prevail in Federal Bankruptcy Court? That's like the Nats winning the last 30 games of the 2009 season.

L. Street said...

Short answer: GE released PR letting everyone know GE and ACN LLC had agreed to go on a M & A splurge while shafting the unsecured creditors out of millions while ACN LLC was still in bankruptcy. What else could Judge Carey do?

Joan said...

Can we PLEASE have a REAL NEWSPAPER in Arlington?

K. Street said...

Damn lucky for ACN and GE that Judge Carey didn't charge ACN, GE, and their attorneys for perjury. Kudos to Judge Carey for dismissing the case.

fed practice attorney said...

Based on what I've already read about this bankruptcy case, if Judge Carey ever wants to be nominated to a Federal Appeals Court Judgeship I will gladly write a letter of recommendation.

Don said...

I can't understand why GE and ACN LLC wrote PR that absolutely indicated to everyone that ACN LLC and GE were going to take ACN into bankruptcy to shaft the unsecured creditors so they could go on an M & A splurge once ACN was out of bankruptcy. Damn folks, GE is #12 on the Fortune 500 list. What the hell is the $5 million or so owed to ACN's unsecured creditors to GE's bottom lime?

Anonymous said...

What else is new in American Corporate Life?

Sheesh said...

McCaffrey just went after the NY Times...sheesh

Anonymous said...

Same GE that owns NBC, which produces The David Letterman Show

Anonymous said...

McCaffrey virtually ignored John Reeder for the past three years while regularly printing news and features about Barbara Favola and Jay Fisette. Then, as usual, McCaffrey stated that Reeder and his party have to find better ways of connecting to the voters when endorsing Fisette.

We really do need a new local newspaper in Arlington.

Westover said...

Seen the Fairfax Times and Alexandria Times lately? Why do we have to put up with the Sun Gazette and its flaky editor?

anon. said...

Excellent question, Westover.

.L.K. said...

Why don't McCaffrey and his good buds John Antonelli and Karen Murray collaborate on a new venture - write the the script, lyrics, and music for a new film about the Sun Gazette, "High School Newspaper"?

Anonymous said...

Second the motion for a new weekly in Arlington along the lines of the Alexandria Times and Fairfax Times. I have seen high school and college weekly newspapers that are better than the Sun Gazette.

Sheesh said...

Scott McCaffrey lives in an area of South Arlington with streets that needed repaving 5 years ago, a high school that needed replacing 10 years ago, street lighting that is terrible, a police force that is never in the community, a fire department that lies about emergency response time so the County can continue to spend money on extravagant entertainment and recreation rather than new fire-ems infrastructure, and McCaffrey endorses the incumbent County Board candidate. Sheesh.

Carlos said...

I am an unsecured creditor of American Community Newspapers, LLC. These people are PIGS who with their bankers tried to rip off the small business tradespeople who provided services to this company by means of the bankruptcy court. DO NOT read this paper and tell the advertisers you don't read it.

Anonymous said...

Well, I don't read the SG. It's an insult to the educated and progressive people who live in Arlington. And I'm not voting for Jay Fisette. My street needed repaving TEN years ago and there are three dim street lights for more than 600 feet of street. As for recreation and entertainment, more non-residents than residents use the nearest "community" center. What the hell are we, anyway, a Club Med for the region?

Jeremy said...

Scott McCaffrey just mentioned in his SG blog that he does not necessarily vote for the candidates he endorses. What a dork.