March 31, 2009

Sun-Times Media files for bankruptcy

The Chicago Sun-Times' publisher said Tuesday that it had filed for Chapter 11 bankruptcy protection after a period of sharp declines in advertising revenue.

The filing by the Sun-Times Media Group in a U.S. Bankruptcy Court in Delaware makes the company the second major newspaper publisher to file for protection in Chicago recently. Tribune Co. filed for Chapter 11 protection in early December.

Sun-Times Media said it had enough funding to continue its operations, but needed to restructure its debts and sell various assets, MarketWatch reported Tuesday.

Sun-Times Media said it had already begun to rein in costs. But, the deteriorating economic climate, coupled with a significant, pending IRS tax liability dating back to previous management has led us to today's action, Chairman and interim Chief Executive Officer Jeremy Halbreich said.

The Chicago Sun-Times is the flagship of a host of community newspapers the company produces.