L.A. Daily News owner expresses interest in bankrupt O.C. Register

Another bidder appears to be lining up for Freedom Communications, the owner of the Orange County Register that filed for bankruptcy this month.

Freedom attorney Bill Lobel told a U.S. Bankruptcy Court judge Friday that another party has offered a loan to help fund the company through bankruptcy. He didn’t detail the source but later told the Register that it was Digital First Media, owner of the Los Angeles Daily News and Long Beach Press-Telegram.

Often such financing is offered by parties interested in purchasing a bankrupt company.

Neither Lobel nor Digital First Media responded to requests for comment.

A loan from Digital First would compete against several options, including financing offered by Tribune Publishing, the owner of the Los Angeles Times.

Hedge fund Silver Point Capital, one of Freedom’s biggest creditors, is offering $3 million in financing. Its offer is based on the condition that $19 million in existing debt would be refinanced, giving it a senior status for repayment.

Tribune also has offered a $3-million refundable deposit to help fund Freedom during its bankruptcy. The money would be credited toward Tribune’s bid if it wins an upcoming court-approved auction. If it doesn’t, the Chicago newspaper company would receive the money back.

Tribune Publishing CEO Jack Griffin told investors last week he hopes the offer of funding will give Tribune “a meaningful seat at the table.”

Developer Mike Harrah, who has joined with Freedom CEO Rich Mirman and co-owner Eric Spitz to purchase Freedom out of bankruptcy, told The Times in an email that he may also offer a loan.

The next hearing in the case is scheduled for Dec. 14.