Chicago's other big newspaper publisher, The Sun Times Media Group, has filed for bankruptcy protection. The filing was made earlier today in the U.S. Bankruptcy Court for the District of Delaware. The company says it will continue to operate its 59 newspapers, including The Chicago Sun-Times. The Sun Times has been going through a great deal of turmoil lately, even by newspaper industry standards. In January, the company's board was ousted by dissident shareholder, as The Sun Times' stock price hovered around 8 cents. The company's last trade on March 30 was for 5 cents.
Jeremy Halbreich, chairman and interim CEO cited the "deteriorating economic climate, coupled with a significant, pending IRS tax liability dating back to previous management," as the reason for the Chapter 11 filing. He said the company expects to exit the restructuring process sometime this year. In Feb. '08, The Sun Times had hoped to put itself up for sale or find a joint venture as it attempted a major turnaround. But none of that came to pass. Release
By David Kaplan