$1 million loan approved to keep ADN afloat
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After delaying twice a crucial decision regarding the future of the Alaska Dispatch News, on Monday, a federal bankruptcy judge approved a loan of up to $1 million from potential buyers to keep the newspaper operating.
The Binkley Co. LLC, out of Fairbanks, is poised to buy the newspaper. Ryan Binkley and Jason Evans of Anchorage have offered to buy ADN for $1 million. Both Binkley and Evans are the new publishers while former publisher Alice Rogoff still owns the newspaper.
ADN filed for Chapter 11 bankruptcy on August 12.
ADN attorney Cabot Christianson said after the hearing that he had been contacted by other perspective buyers. Christianson told KTUU that if the loan was not approved, the paper would not be able to cover ongoing expenses and the paper would have to fold.
"We had a series of do-or-die hearings and we made it," said Christianson.
The $1 million loan that was approved Monday will go towards paying insurance premiums and employees.
Last Thursday, the judge and Northrim Bank allowed ADN to use $80,000 from its account to pay newspaper carriers so papers could be delivered Friday morning. On Friday, the judge and Northrim also approved $50,000 from its bank account to pay workers compensation, insurance premiums and employee reimbursements.
But the hearing was postponed again Friday after attorneys from all parties involved requested more time to look over new language added to the agreement.
ADN owes various vendors more than $2.5 million. Rogoff said in court via telephone last week she had sunk $17 million of her own money to fund the newspaper.
The court has set a hearing on the official sale of the newspaper September 11 at 9:30 a.m.
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