An asset purchase agreement filed in federal bankruptcy court, which is expected to be discussed at a hearing this morning, shows that MediaNews Group will pay $5 million for the assets of the company, which filed for bankruptcy protection in March. The documents say a closing date will be set no earlier than 30 days after the agreement is approved by the court and no later than July 31.
At least five days before the closing date, MediaNews Group will notify employees who will be retained and conditions of their employment.
Employees not retained by MediaNews Group will not receive a severance package, the documents state.
As of the closing date, the documents say, WEEU will go off the air.
The documents say Reading Eagle Company will attempt to sell the radio station's FCC license. If it is purchased, the buyer will be able to use WEEU's tower, antenna and transmitter for up to five years or until MediaNews Group sells them, whichever comes first.
|WEEU 830 AM (20 Kw-D, 6 Kw-N) Daytime 2 mV/m contour|
The company filed for bankruptcy protection March 20, citing an untenable financial situation. The company was put up for sale, and MediaNews Group was the only group to submit a qualified bid by the May 15 bid deadline.