U.S. Bankruptcy Court Judge Dorothy Eisenberg ruled Thursday that Brown Media Corp. — formed in March by three Brown Publishing execs, including CEO Roy Brown, CFO Joe Ellingham and General Counsel Joel Dempsey — could purchase the majority of the assets of Brown Publishing for its bid of $22.4 million.
She also approved the Delphos Herald Inc.’s purchase of the Van Wert Times and the Ada Herald and their associated websites in Ohio for $3.6 million.
After two days of hearings following a 20-hour auction earlier this month, the judge rejected the sale of three real estate parcels in Urbana, Xenia and Bellevue, Ohio, to Brown Media for the lone bid of $10,000. Secured creditors had objected, contending that the parcels’ value was closer to $500,000, and that they had not been properly marketed for the highest possible sale price.
The sale involves assets in Ohio, New York, Texas, South Carolina, Illinois, Iowa, Colorado, Utah, Arizona and Wyoming. Brown Publishing purchased Boulder Business Information Inc. in February 2008. BBI owns 51 percent of Northern Colorado Business Report and Wyoming Business Report.
Brown Publishing Co. filed for Chapter 11 bankruptcy relief on April 30, claiming $104 million in debt and valuing its assets at $104 million.
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