Judge: Creditor Can Credit Bid On Most Free Lance-Star Assets, But Not Radio Licenses
March 26, 2014 at 4:50 AM (PT)
A judge has ruled that THE FREE LANCE-STAR PUBLISHING CO.'s primary creditor can make a credit bid on most of the bankrupt FREDERICKSBURG, VA newspaper and radio company's assets, but not its radio licenses and other assets on which the creditor does not have a direct lien.
The FREE LANCE-STAR reports that secured lender SANDTON CAPITAL PARTNERS, which bought the loan previously held by BB&T, was told by U.S. Bankruptcy Judge KEVIN R. HUENNEKENS that it can credit bid on the newspaper, websites, radio station facilities, printing plant and real estates, but not on the FCC licenses, radio towers, vehicles, life insurance policies and bank accounts.
A hearing is scheduled for MONDAY on how much SANDTON can credit bid; SANDTON wants to be allowed to bid the entire outstanding loan balance of $38 million, but attorneys for FREE LANCE-STAR object, saying that the amount would deter rival bidders.