ADN approved to get $1 million loan from The Binkley Company
It took three hearings, but Monday's decision means the Alaska Dispatch News will be able to operate with a $1 million loan, while the sale of the paper is pending.
A federal bankruptcy judge approved the debtor-in-possession loan agreement, meaning The Binkley Company will help finance the paper up to $1 million, while it seeks to buy the paper. The Binkley Company is led by Ryan Binkley and partners with Jason Evans, who runs three rural newspapers in Alaska with Alaska Media, LLC.
"That's exactly what we wanted," said Cabot Christianson, the attorney representing ADN. "We've had a series of do-or-die hearings and we made it."
The money will help pay for insurance premiums, wages and everyday operations until the hearing for the sale of the paper, which is scheduled for Sept. 11. The Binkley Company will take over reorganization efforts and the publishing of the paper, but Alice Rogoff remains the owner.
Last Friday's hearing was continued into Monday since attorneys for the paper's different creditors wanted extra time to finalize wording and documents for the agreement over the financing plan.
"It was very, very challenging," Christianson said. "There were a lot of people, with a lot of different issues, a lot of lawyers, a lot of money. A lot of difficult things."
It's been almost two weeks since the ADN filed for Chapter 11 bankruptcy protection and announced The Binkley Company as its potential buyers. Right now, the paper is slated to be sold for $1 million. It will stay at that amount, unless another potential buyer comes in and makes a higher bid, Christianson said.
As of Monday evening, GCI spokesperson Heather Handyside said they were close to reaching an agreement with Rogoff with this financing plan. Handyside said GCI was working on an option to extend the lease on its building for up to 16 months. Tuesday morning, Handyside said Rogoff gave GCI her commitment to take full responsibility in removing the printing equipment from the building.
Editor's note: GCI is the parent company of KTVA.