Black Press Ltd. files for creditor protection, announces sale

Black Press Ltd. says it has entered creditor protection under the Companies' Creditors Arrangement Act (CCAA).

Along with the CCAA proceedings, it has entered into a sales agreement to Canso, Deans Knight Capital Management Ltd. and Carpenter Media Group through a support agreement and term sheet.

The Surrey-based publisherbehind community news outlets focused on Western Canada says the order provides a stay of proceedings and approves debtor-in-possession financing by Canso Investment Counsel Ltd.

"This plan will lead to a stronger, more sustainable Black Press that will continue to provide by far the best local Canadian and American news coverage in our markets and the best ways for advertisers to reach their customers," said Glenn Rogers, chief executive officer of Black Press in a statement.

"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 has also secured debtor-in-possession financing from Canso that will help it maintain operations in the interim, while it says a sale of the company will provide needed investment to allow the publisher to continue serving readers and advertisers.

A corporate press release issued Monday says the move would put the publisher on a stronger financial footing for the long term.

In announcing the retirement of president and majority owner David Black, who founded Black Press in 1975, the company said his family believe they're leaving the publisher in good hands.

Subsidiary Black Press Media intends to continue to operate its local news publications within Canada, with its head office remaining in Surrey.

The company publishes 150 daily and weekly newspapers, magazines and websites including the Abbotsford News, Surrey Now-Leader and Yukon News.

Black Press, which also has publications in Washington, Hawaii and Alaska, says it will seek recognition of the CCAA proceedings in the U.S.

KSV Advisory has been appointed as the monitor for Black Press's CCAA proceedings.