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CHICAGO, Mar 31, 2009 (BUSINESS WIRE) -- Sun-Times Media Group, Inc. (Pink Sheets:SUTM) today announced that it and certain affiliates (the "Company") filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The filing was made earlier today in the U.S. Bankruptcy Court for the District of Delaware.
The Company and its principal operating subsidiary, the Sun-Times News Group, will continue to operate its newspapers and online sites as usual while it focuses on further improving its cost structure and stabilizing operations. The Company has retained Rothschild Inc. to commence a process for the sale of assets pursuant to Section 363 of the U.S. Bankruptcy Code. The Company believes it has sufficient financial resources to continue customary day-to-day operations during this process.
The Company operates 59 newspapers and their corresponding online sites. Those titles include: the Chicago Sun-Times, the SouthtownStar, Beacon News (Aurora), Courier-News (Elgin), Herald News (Joliet), Lake County News-Sun (Waukegan), Naperville Sun, Post-Tribune(Merrillville, Ind.), and weeklies published by Pioneer Press and Fox Valley Publications. The Company also publishes free shoppers and content on all of its corresponding online news sites and other sites such as YourSeason.com.
"Over the past several months, the Company has taken several steps to reduce costs and strengthen our organization. However, the significant downturn in the print advertising environment that has affected newspapers across the country has continued to severely impact us," said Jeremy L. Halbreich, Chairman and Interim Chief Executive Officer of Sun-Times Media Group. "Unfortunately, this deteriorating economic climate, coupled with a significant, pending IRS tax liability dating back to previous management, has led us to today's difficult action. Importantly, we firmly believe that filing for Chapter 11 protection and exploring the potential sale of assets or new investment in the Company offers us the best opportunity to protect our respected media properties for the long-term."
Halbreich added, "With today's filing, it will be business as usual as we continue to operate our newspapers and online sites. We provide the area's best source of local news and information and remain committed to continuing to serve our readers, advertisers, and communities. We have enjoyed a long, rich history in the Chicago area and our goal is to preserve and sustain these strong print and online news and information assets that are such an integral part of the fabric of Chicago and its neighboring communities."
The Company intends to move through the Chapter 11 process as quickly as possible and expects the process to be completed in 2009.
The Sun-Times Media Group's legal advisor is Kirkland & Ellis and its financial advisor is Rothschild Inc. Huron Consulting Group is acting as restructuring advisor to the Company.
More information about the Sun-Times Media Group's bankruptcy case is available by clicking on the "Chapter 11 Information" link at www.thesuntimesgroup.com.
About Sun-Times Media Group
Sun-Times Media Group, Inc. is dedicated to being the premier source of local news and information for the greater Chicago area. Its media properties include the Chicago Sun-Times and Suntimes.com as well as newspapers and Web sites serving more than 300 communities across Chicago. Further information, including updates about the reorganization, can be found at www.thesuntimesgroup.com.
Cautionary Statement on Forward-Looking Statements
Certain statements made in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain the words "believe," "anticipate," "expect," "estimate," "project," "will be," "will continue," "will likely result," "plan," or similar words or phrases. Forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from the forward-looking statements. The risks and uncertainties are detailed from time to time in reports filed by Sun-Times Media Group with the Securities and Exchange Commission, including in its Forms 10-K and 10-Q. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.
SOURCE: Sun-Times Media Group, Inc.
Sun-Times Media Group, Inc.
Tammy Chase, 312-321-3230
Director of Corporate Communications
tchase@suntimes.com
Copyright Business Wire 2009
