U.S. Bankruptcy Judge Richard E. Fehling approved the sale of the Reading Eagle (Pennsylvania) to MediaNews Group May 22, the Philadelphia Inquirer reported. The sale is set to close by July 31, the Inquirer said.
New York hedge fund Alden Global Capital’s MediaNews Group made the only qualified bid for Reading Eagle Company's assets.
The Reading Eagle Company filed for bankruptcy protection under Chapter 11 on March 20.
Family-owned Reading Eagle Company includes the Reading Eagle, WEEU 830 AM, the weekly South Schuylkill News, Pretzel City Productions and its commercial printing subsidiary REP.
The paper has more than 220 staff, according to the Inquirer.
Denver-based MediaNews Group is not buying the license for WEEU 830 AM, so the station could cease broadcasting this summer, according to the Reading Eagle.
Reading Eagle Co. had warned of the chance of massive layoffs in a WARN notice filed with the Pennsylvania Department of Labor and Industry, the Inquirer reported. The filing happened before MediaNews Group’s bid.
Staff not kept by MediaNews Group won’t get a severance package, the Reading Eagle says.
Members of four unions that represent 39 employees in production and distribution aren’t likely to be kept, according to court documents, the Eagle reported.