Owner of Los Angeles Times Offer $3M Loan to Freedom Communications in Second Round of Bankruptcy
On Wednesday, the Los Angeles Times owner offered a bankrupt rival newspaper in Southern California loan of $3 million which is considered as a beginning of a bidding war.
The loan proposal was offered to help the parent company of the Orange County Register and Riverside Press-Enterprise sustain its day to day expenditure as it tries to handle with a bankruptcy proceedings in a second round.
Tribune Publishing base in Chicago told a federal bankruptcy judge that it is ready to give a loan to the Freedom Communications and the money that it gives should be counted in any bid which might be made by the Tribune for the assets of Freedom Communications. On Sunday, Freedom, filed for Chapter 11 bankruptcy. In the last two years, the company lost greater than $40 million while it expanded rapidly under the leadership of its earlier CEO Aaron Kushner. He started some newspapers in Los Angeles and Long Beach which had to be closed later on.
Reportedly, Tribune, is not the only one offering help but Silver Point Capital which is also a creditor of Freedom is also offering $3 million in finances to the troubles company.
Tribune, owns the San Diego Union-Tribune, Chicago Tribune and Baltimore Sun and it's attorney Jeremy Rosenthal expressed an objection the offer put forward by Silver Point. Rosenthal told Mark S. Wallace, the U. S. Bankruptcy Court Judge that Tribune wants an "opportunity to bid at a fair, open, transparent proceeding."
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