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Leesburg Today bought by creditors
For $32 million, creditors purchased American Community Newspapers, the parent company of Leesburg Today.
ACN, based in Addison, Texas, filed for Chapter 11 bankruptcy April 28, reporting about $107.3 million in debts.
The company was up for auction May 29 with a minimum asking price of $37 million. No outside bids were placed, according to court records.
Instead, a group of lenders to the news group formed a limited-liability company called American Community Newspapers II, and purchased ACN.
Sale contracts were filed with the U.S. Bankruptcy Court in Delaware June 3.
The purchase includes Leesburg Today, Loudoun Business and Loudoun Magazine and all their property, including intellectual property.
The contract states that the sale will be finalized in Chicago on the third business day after the seller and buyer agree to the sale contract.
“At the closing, the sellers shall turn over actual possession and control of all of the purchased assets to the purchaser,” the contract states.
It is unclear what changes will be made to the Loudoun media outlets.
A spokesman for ACN said, "There are no changes to the day-to-day operations."
The contract did not give details on any possible staff changes. “The purchaser shall have no obligation to employ any of the employees of the seller,” it states.
Leesburg Today, founded in 1988, is not alone in its struggle in the down economy.
The Purcellville-based Blue Ridge Leader, founded in 1984, published its last edition in April of this year.
The Loudoun Independent filed for bankruptcy in February 2008, missing a few weeks of printing. M.C. Dean, a Dulles-based tech firm, is now paying the bils and overseeing operations.
ACN is the seventh newspaper chain in the United States to file for bankruptcy since December.
Contact the reporter at hhobbs@timespapers.com
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