Freedom Communications selects $45.5 million lead bid ahead of auction

By Caroline Salls

Pittsburgh, March 15 – Freedom Communications, Inc. selected a $45.5 million offer from Medianewsgroup, Inc. as the stalking horse bid for substantially all of its assets, according to a notice filed Monday with the U.S. Bankruptcy Court for the Central District of California.

Medianewsgroup does business as Digital First Media.

If Digital First is the winning bidder for the assets, the final purchase price under the stalking horse agreement would be reduced by an estimated $2.2 million for net adjustments for purchased cash, escrow for cure costs and contingent consideration based on collected accounts receivable.

If Digital First is not the winning bidder, Freedom will pay it a 2.5% break-up fee and reimburse up to $200,000 of its sale-related expenses.

The auction will be held on March 16, and the sale hearing is scheduled for March 21.

Freedom Communications, a Santa Ana, Calif.-based newspaper company, filed for bankruptcy on Nov. 1. The Chapter 11 case number is 15-15311.

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