By Maria Chutchian

Law360, New York (January 04, 2012, 7:38 PM ET) -- The Eleventh Circuit on Wednesday vacated a lower court's ruling that called for the distribution of News-Journal Corp.'s assets to a shareholder, citing a Florida statute prohibiting distributions to shareholders if doing so renders the corporation insolvent.

In remanding the case to Florida federal court, a three-judge panel found that the judge inaccurately interpreted the statute in ordering News-Journal to distribute shareholder Cox Enterprises Inc. all of its assets, which the district court valued at $129.2 million.

These developments occurred after News-Journal failed to repurchase Cox's...