Alaska Dispatch News reported on its bankruptcy declaration:
Alaska's largest newspaper filed for Chapter 11 bankruptcy protection Saturday evening.The filing is a Chapter 11 bankruptcy. Bankruptcy filings are legal proceedings. I was not aware Alaska courts are open on Saturday evenings.
In a prepared statement Saturday, Alaska Dispatch News LLC owner Alice Rogoff, who also has served as publisher, said it was a "truly bittersweet" moment for her.
It's not Alice Rogoff's first Alaska implosion. Rogoff, wife of billionaire Carlyle Group co-founder David Rubenstein, couldn't save her Alaska House in New York City. It closed in 2010.
A local buyer group has been identified and committed $1 million for ADN to pay its bills, many of them in arrears. Buyers will operate the newspaper starting Monday morning.
Rogoff paid $34 million for the former Anchorage Daily News in 2014. The reported purchase price is "up to $1 million."
The Rubenstein's have strong Alaska connections. Rogoff hosted President Barack Obama for dinner in her Alaska home. Two private equity underwriters attended the dinner, one from Guggenheim Partners and the other from Pt Capital. The Carlyle Group manages Alaska Permanent Fund money and has an interest in Hilcorp Energy, which has a significant Alaska presence.
Two of Alice Rogoff-Rubenstein's Alaska pet projects sank for financial reasons. Her husband knows when to stop throwing good money into a sinkhole. Carlyle did that recently with nursing home giant ManorCare and refiner Philadelphia Energy Solutions. Carlyle has $50 billion in dry powder but won't put a penny more in PES.
Lenders clearly want to tie Mr. Rubenstein and his billions to ADN debts. When the big money boys no longer trust one another to make good on their debts it's financial crisis time. Will ADN's failure take us one step closer to that reality?
Update 9-13-17: Mrs. Rubenstein described her husband's patriotic philanthropy as "publicity grabs and claimed all her financier husband really cares about is making money."
Update 11-12-17: A former ADN employee wrote about the company's demise under Mrs. Rubenstein.
Update 12-8-17: The Rubenstein's divorced according to today's WaPo. The article did not address how any divorce proceeds might go to make ADN creditors whole.
Update 4-16-18: Bankruptcy court uncovered questions of possible fraud on Mrs. Rubenstein's part. One jilted contractor asserts fraud as well.
