An affiliate of New York-based investment firm Sandton Capital Partners is in line to become the owner of The Free Lance–Star Publishing Co. and its radio stations.
According to the paper, Sandton submitted the highest bid of $30.2 million for all the assets of the Fredericksburg-based media company during an auction held last week at a downtown Richmond hotel, attorneys for the FLS announced during a Thursday morning hearing in front of U.S. Bankruptcy Judge Kevin R. Huennekens.
Sandton principal Robert Orr said the firm plans to finalize the purchase of the FLS’ assets as soon as possible and no later than June 20. Orr said in court that Sandton likes the FLS’ management, product and reputation in the Fredericksburg community.
“We really believe strongly in community newspapers, especially the good ones, and we think this is a good one,” he told The Free Lance–Star management and staff in a meeting late Thursday afternoon.
Sandton purchased a loan from BB&T last summer that had been made to the FLS in 2007 to build Print Innovators, a commercial printing plant on Belman Road in Fredericksburg. The outstanding balance is about $38 million.
The FLS’ assets include WFLS, WVBX, WWUZ, WNTX.
The FLS has been operating normally as a debtor-in-possession inside bankruptcy protection since its Jan. 23 filing. The sale will end the Rowe family’s 130-year ownership of the local media company.
The FLS took many steps to try to restructure the business to become compliant with the loan covenants. That included reducing the number of full- and part-time employees from about 454 in 2007 to 303 at the end of 2013.
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