Black Press Ltd., a news empire of about 150 publications founded by Victoria’s David Black, has filed for creditor protection in B.C. Supreme Court.
The company also announced Monday in conjunction with its Companies’ Creditors Arrangement Act filing a sales agreement with Canso Investment Counsel and Deans Knight Capital Management Ltd. — both long-time partners in the company — as well as Carpenter Media Group.
The Surrey-based publisher said the order provides a stay of proceedings and approves debtor-in-possession financing by Canso Investment Counsel.
At the same time as the filing, Black — a long-time resident of Victoria — announced he is retiring from the news business.
Black Press Media said it intends to continue to operate its local news publications within Canada, with its head office remaining in Surrey. The proposed transaction will require court approval.
The company publishes about 150 daily and weekly newspapers, magazines and websites.
Of those, 23 news platforms are on Vancouver Island, including the Victoria News, Oak Bay News and Goldstream News Gazette as well as the Nanaimo News Bulletin, Campbell River News Mirror and Cowichan Valley Citizen.
Black Press, which also has publications in Washington state, Hawaii and Alaska, said it will seek recognition of the Companies’ Creditors Arrangement Act proceedings in the U.S. through courts in Delaware.
KSV Restructuring Inc., headquartered in Toronto, has been appointed monitor in the creditor protection.
Carpenter Media Group operates similar community news publications throughout the southern U.S., including in Texas, Louisiana, Mississippi, North Carolina, Tennessee, Georgia, Virginia and Kentucky.
In a statement, Todd Carpenter, chairman of Carpenter Media Group, said his company is committed to maintaining Black Press’s “presence in Canada and to a plan that creates the most financially beneficial environment for Black Press to continue.”
Black Press said the transaction will address the company’s obligations to its secured creditors and will include an injection of capital that will enable the company to continue serving readers, advertisers and other stakeholders.
Its statement said that under the terms of the transaction, Black Press will continue to be Canadian-controlled.
The deal will put Black Press on solid financial footing, it said, “enabling it to continue to serve its valued Canadian and American readers, customers, employees and communities over the long term.”
Glenn Rogers, chief executive of Black Press, said Canso, Deans Knight and Carpenter Media have been “true partners throughout this process as we’ve built a plan that we believe is the right way forward for Black Press.”
Black Press employs about 1,200 people between the Canadian and U.S. divisions.
David Black announced his retirement on Monday, ending a half-century of involvement in the business that began with his acquisition of the Williams Lake Tribune in 1975.
“The Black family is confident that the restructuring of Black Press announced today will be successful and enable Black Press to continue to provide high quality community journalism, and that the proposed new owners will be excellent stewards of Black Press’ treasured publications,” the statement said.
— with files from The Canadian Press
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