Ad Falloff, Tax Penalty Force Sun-Times Into Ch. 11

Law360, New York (March 31, 2009, 12:00 AM EDT) -- In an effort to avert a potentially fatal cash crisis, Sun-Times Media Co. Inc. filed for bankruptcy Tuesday, blaming an unexpectedly sharp drop in advertising revenue, legacy liabilities left over from former management woes and a looming Internal Revenue Service tax penalty the media company can't afford to pay.

Sun-Times Media filed its voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the District of Delaware, listing assets of $479 million and collective debt of $801 million. At the same time, the company sought to...
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