Sun-Times deal expected by month's end

The Chicago Sun-Times, its 58 suburban community newspapers and Web sites are expected to have a new owner by the end of the month, following approval today of the sale of the company by the U.S. Bankruptcy Court.

U.S. bankruptcy judge Christopher Sontchi approved the sale of Sun-Times Media Group to Mesirow Financial Chairman and CEO James Tyree and a group of investors, the only formal bidder willing to take on the bankrupt company. Tyree and his investors offered $5 million in cash and about $20 million for debt and other liabilities.

"We're happy to see this go forward and save the institution," said Tom Thibeault, executive director of the Chicago Newspaper Guild. "We've worked hard on this all week and especially yesterday putting together the votes to allow Mr. Tyree to take over."

Tyree originally proposed harsh concessions in pay and benefits to the unions, but then provided more palatable cuts this week. The deal hinged on the unions approving the cuts in order to keep the newspaper viable.

The Sun-Times reporters' union along with those at the Joliet Herald-News, News-Sun in Waukegan and the Pioneer Press suburban papers have approved the three-year deal. It offers up to a 19 percent pay cut or combination related to pay and benefits, elimination of seniority and allowing reporters to be transferred to other papers, a 401K in place of a pension, and four to eight weeks of severance based on seniority if layoffs occur within six months of the agreement.

"Six months ago, the company filed for Chapter 11 (reorganization) with the goal of stabilizing the business and ensuring the long-term future of our newspapers and online products. I'm absolutely pleased that we were able to achieve these goals with the investors in STMG Holdings LLC in such a timely manner," Jeremy Halbreich, Sun-Times Media Group chairman and interim CEO said in a statement.

He said Tyree expressed "enthusiasm" for the newspaper group, despite challenging times for the industry.

"These new owners will work hard to establish a wonderful, long future for our publications and for our employees, and finally, all of the legacy issues and distractions that have followed and negatively affected our products will be put to rest," Halbreich said.

The closing remains contingent on approvals by two of the company's 16 bargaining units of amendments to their collective bargaining agreements. Those agreements are expected in the coming days, the Sun-Times company said.

Tyree was unavailable for comment today, but said late Wednesday that he was pleased with the union approvals.

"I think it's terrific," Tyree said.

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