May 16, 2008 — The purchasers of the Virgin Islands Daily News, Pennsylvania-based Times-Shamrock Communications Group, paid $5.25 million for the newspaper, according to court documents.
Stan Springel, Chapter 11 trustee of Jeffrey Prosser's former company, Innovative Communication Corporation, noted the amount paid in a filing to the U.S. Bankruptcy Court in Pittsburgh on May 15.
In his report, Springel said his organization had contacted more than 200 parties, including about 88 newspapers, regarding the daily. There had been 10 initial indications of interest and seven were invited into the second round of bidding. The two finalists each offered $4 million, and, after six "full rounds of bidding" the Scranton group prevailed at $5.25 million.
When Prosser bought the paper from the Gannett chain 11 years ago, sources close to the Daily News pegged the selling price in the vicinity of $17 million. American newspapers in general were selling for higher prices than they command now in the age of Internet news.
The purchase is subject to the approval of Judge Judith Fitzgerald, who is hearing the case.
The principal Prosser assets have been divided into Group 1, including Vitelco and various Virgin Islands businesses, and Group 2, the French and French island companies. Final bids for these are to be received by the trustee on June 10, with an auction following two days later.
The bulk of the Prosser-related assets are in these two collections of corporations.
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