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Free Lance-Star bankruptcy

ABOUT CHAPTER 11

The Free Lance-Star Publishing Co. is continuing normal operations while it reorganizes under Chapter 11 bankruptcy. Here are some key facts of the case.
  • The company, which the Rowe family of Fredericksburg has owned in some form for 130 years, in 2007 took out a roughly $46 million loan from BB&T to build the Print Innovators commercial printing plant on Belman Road.
  • The FLS never missed a payment on the loan to BB&T, but fell out of compliance with the loan agreement due to an insufficient ratio between debt and earnings.
  • In 2013, BB&T sold the loan to New York City-based investment fund Sandton Capital Partners for an undisclosed amount. Sandton then advised the FLS to file for bankruptcy.
  • The FLS filed for chapter 11 bankruptcy Jan. 23. That part of the code allows businesses to reorganize under U.S. bankruptcy laws.
  • The FLS is continuing normal operations while in bankruptcy protection as a debtor in possession.
  • Owed about $38 million, Sandton is the only secured creditor in the case. The only significant unsecured creditor is the Pension Benefit Guaranty Corp., which is owed about $5.3 million, representing the underfunded portion of the company’s pension plan.
  • Bidders will be given the opportunity to purchase the FLS’ assets—radio stations, websites, the newspaper, real estate, Print Innovators and more—through the Chapter 11 process. The winning bidder will own the reorganized company, which will be free of long-term debt.
  • The FLS is represented by law firms Tavenner & Beran and Kaufman & Canoles, as well as financial advisor Protiviti Inc.
  • Sandton is represented by law firms Sands Anderson and Lowenstein Sandler.

    News articles related to FLS bankruptcy

    Sandton Capital submits top bid for The Free Lance-Star's assets

    BY BILL FREEHLING / THE FREE LANCE–STARRICHMOND—An affiliate of New York-based investment firm Sandton Capital Partners is in line to become the owner of The ... May 22, 2014 in The News Desk.

    Auction of Free Lance–Star assets begins today

    BY BILL FREEHLING / THE FREE LANCE–STARThe future of The Free Lance–Star Publishing Co. could be determined today in Richmond, though the outcome may not be pu ... May 14, 2014 in The News Desk.

    Judge limits main FLS creditor

    BY BILL FREEHLING / THE FREE LANCE–STARRICHMOND—Sandton Capital Partners will be restricted in how much it can credit-bid on the assets of The Free Lance&ndash ... Mar 31, 2014 in The News Desk.

    Judge sides with FLS, protects radio assets

    BY BILL FREEHLING / THE FREE LANCE–STARRICHMOND—Sandton Capital Partners will be allowed to place a credit bid on most, but not all, of The Free Lance–St ... Mar 25, 2014 in The News Desk.

    FLS adviser testifies against large credit bid

    BY BILL FREEHLING / THE FREE LANCE–STARRICHMOND—Companies interested in bidding on the assets of The Free Lance–Star Publishing Co. probably won’t ... Mar 24, 2014 in The News Desk.

    FLS case returns to court Monday

    BY BILL FREEHLING / THE FREE LANCE–STAR The outcome of a Monday morning hearing in federal bankruptcy court could help determine the new owner or owners of The Free ... Mar 21, 2014 in The News Desk.

    FLS assets will be auctioned in May

    BY BILL FREEHLING / THE FREE LANCE–STAR RICHMOND—The Free Lance–Star Publishing Co.’s assets are scheduled to be auctioned off in May as part of the media company’s ... Mar 06, 2014 in The News Desk.

    The Free Lance-Star interests 17 potential bidders

    BY BILL FREEHLING / THE FREE LANCE–STARRICHMOND—Seventeen potential bidders have expressed interest in purchasing the assets of The Free Lance–Star Publi ... Feb 28, 2014 in The News Desk.

    FLS creditors will meet today

    BY BILL FREEHLING / THE FREE LANCE–STARCreditors in The Free Lance–Star Publishing Co.’s Chapter 11 bankruptcy case will meet this morning in Richmond fe ... Feb 27, 2014 in The News Desk.

    FROM THE PUBLISHER: Thanks for standing by us

    BY NICK CADWALLENDER / THE FREE LANCE–STARIn 1869, Rufus Merchant, the great-grandfather of Fredericksburg’s current mayor, published the first edition of The ... Feb 01, 2014 in The News Desk.

    FLS publisher: Thanks for standing by us

    BY NICK CADWALLENDER / THE FREE LANCE–STAR IN 1869, Rufus Merchant, the great-grandfather of Fredericksburg’s current mayor, published the first edition of The Star ... Feb 01, 2014 in The News Desk.

    Sandton ‘excited’ about FLS future

    BY BILL FREEHLING / THE FREE LANCE–STARThe investment firm that might end up owning the assets of The Free Lance–Star Publishing Co. says it’s excited to ... Jan 30, 2014 in The News Desk.

    FLS wins approval to continue operations

    RELATED: The Free Lance-Star files for bankruptcy PDF: Read the petition for bankruptcy BY BILL FREEHLING / THE FREE LANCE–STARThe Free Lance–Star Publish ... Jan 24, 2014 in The News Desk.

    The Free Lance-Star files for bankruptcy

    UPDATE: Representatives for The Free Lance–Star Publishing Co. will Friday ask a bankruptcy court judge in Richmond to allow the company to keep operating as nor ... Jan 23, 2014 in The News Desk.

    Petition for bankruptcy

    Free Lance-Star petition for bankruptcy by fredcomfls