Sun-Times Media Group

Summary

Financial Advisor

Chicago, IL

The Company is a leading Chicago metro and suburban newspaper publisher with over 50 publications in serving the greater Chicago market, including the Chicago Sun-Times. They entered bankruptcy with an approximately $600 million IRS tax liability from a previous management team’s fraud, and a cash burn from operations of greater then $1 million per week.

CMAG professionals served as the financial advisor to Official Committee of Unsecured Creditors (“UCC”) throughout its bankruptcy process.

Engagement Highlights

During the engagement, CMAG professionals conducted extensive diligence into the Company to gain detailed knowledge of the Company’s financial performance, and viability as a go forward business. CMAG assisted Debtor’s professionals explore all strategic alternatives in order to maximize value to the estate. CMAG monitored the company’s operational performance on a continuing basis and monitored all aspects of the bankruptcy case on behalf of the UCC.
Following an extensive sale process run by the Debtors, STMG Holdings LLC, an investor group led by David Tyree, provided a Stalking Horse bid for the company. No competing qualified bids were submitted and in October 2009 the bankruptcy court approved the sale of substantially all of the company’s assets to STMG Holdings LLC.
The Stalking Horse bid was contingent upon achieving certain concessions from the multiple unions represented in STMG’s workforce. After intense negotiations, the required concessions were met and the transaction completed.

Sun-Times Media Group

Summary

Financial Advisor

Engagement Highlights

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