Court filing: Insiders group can’t complete bankruptcy purchase of Ohio-based newspaper chain

Insiders can’t complete newspaper chain purchase

CINCINNATI — Brown Publishing Co. has said an insiders group cannot complete its bankruptcy auction purchase of the Ohio-based newspaper chain after the group’s lender withdrew.

A federal bankruptcy judge last month ruled that the newly formed Brown Media Corp., led by current president and CEO Roy Brown, could buy the majority of the Brown Publishing chain for $22.4 million.

Brown Publishing said in a court filing that it now expects to close a sale to PNC Bank as the next-highest bidder by Sept. 3 but needs to use cash collateral to operate through then.

The sale involves assets in Ohio, New York, Texas, South Carolina, Illinois, Iowa, Colorado, Utah, Arizona and Wyoming.

A message was left for Brown Publishing attorneys and at the company’s Cincinnati offices.