The Canada-based media company Black Press Ltd., owner of Sound Publishing, which owns the “Peninsula Clarion,” “Homer News,” and “Juneau Empire,” announced on Jan. 15 its intent to seek new ownership as part of a plan for corporate financial restructuring.
The news release from Black Press does not mention plans for any of its subsidiary companies, but states that it obtained an Initial Order on Jan. 15, under the Companies Creditors Arrangement Act from the Supreme Court of British Columbia in Vancouver. The release goes on to state, “the Initial Order also extends the stay of proceedings to certain subsidiaries of the Company that are not petitioners in the CCAA Proceedings.” Black Press owns two subsidiary companies in the United States: Oahu Publications Inc. and Sound Publishing.
Sound Publishing, which owns three newspapers in Alaska, could not be reached for comment on the future of its Alaska-based companies.
According to the press release, Black Press intends to seek Court approval in Canada to launch a sale and investment solicitation process for its business and assets on or around Jan. 25.
Among other things, the Transaction will address the Company’s obligations to its secured creditors and will include an injection of capital that will enable Black Press to continue serving readers, advertisers and other valued stakeholders. It also brings additional expertise in successful management of local media, as well as the continued support of Deans Knight and Canso, large Canadian institutional investors with a long-term focus, a history of supporting the Company and significant experience in the media sector. Under the terms of the Transaction, the Company will continue to be Canadian-controlled.
The press release suggests a current unstable financial portfolio for the Company, stating that a sale is necessary in order to “put [Black Press] on solid and sustainable financial footing.”
