Bankruptcy court OKs Herald sale to Digital First
A Delaware bankruptcy judge has approved the sale of the Boston Herald to Digital First Media for $11.9 million, following an auction for the newspaper earlier this week.
The sale, which required court approval, was authorized yesterday, according to court records.
Digital First emerged as the successful bidder for the Herald during the auction Tuesday, placing the winning bid over rivals Gate House Media and Revolution Capital.
Digital First — which also goes by Media News Group — owns hundreds of publications across the country, including the Denver Post and the San Jose Mercury News. After the deal closes, the company has agreed to offer jobs to 175 employees at the Herald, which currently employs more than 200. The deal is expected to close by March 28.
“The Guild is looking forward to starting negotiations with representatives from Media News Group in the coming days,” said The Newspaper Guild of Greater Boston, the Herald’s largest union, in a statement. “After these past weeks of uncertainty, Herald workers deserve a clear path forward.
It is our hope that Media News Group will soon begin to share their vision for the Herald with its employees.”
A representative for Digital First declined to comment.
The Herald filed for Chapter 11 bankruptcy on Dec. 8, a process that allowed the paper to shed the weight of its tens of millions in pension and severance liabilities, leaving uncertainty about how much employees will receive from their pensions, but giving the new owner a fresh start to bring the company’s financials back into the black.
The Herald was expected to lose $3 million this year on about $33 million in overall sales, and pension, severance and retirement payments to employees were estimated to be $3.5 million, according to court papers. Since 1994, the paper had been owned by publisher Patrick J. Purcell.