A bidding war may be emerging for the Orange County Register. (Don Bartletti / Los Angeles Times)
November 14, 2015
Another bidder appears to be lining up for Freedom Communications, the owner of the Orange County Register that filed for bankruptcy last week.
Freedom attorney Bill Lobel told a U.S. Bankruptcy Court judge Friday that another party has offered a loan to help fund the company through bankruptcy. He didn’t detail the source but later told the Register that it was Digital First Media, owner of the Los Angeles Daily News and Long Beach Press-Telegram.
Often such financing is offered by parties interested in purchasing a bankrupt company.
Neither Lobel nor Digital First Media responded to requests for comment.
A loan from Digital First would compete against several options, including financing offered by Tribune Publishing, the owner of the Los Angeles Times.
Hedge fund Silver Point Capital, one of Freedom’s biggest creditors, is offering $3 million in financing. Its offer is based on the condition that $19 million in existing debt would be refinanced, giving it a senior status for repayment.
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