Business News

American Community Newspapers Provides Update on Restructuring

Monday 01. June 2009 - American Community Newspapers Inc. (Pink Sheets: ACNI) ("ACNI") today provided an update on its operating company's and ACNI's restructuring process.

American Community Newspapers LLC:

As previously announced on April 28, 2009, American Community Newspapers LLC (“ACN”), the subsidiary operating company of ACNI, has voluntarily filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. ACN intends to restructure via the 363 sale process, and ACN’s senior secured creditors submitted an offer to purchase ACN’s assets. The secured creditors also provided a $5 million debtor in possession credit facility.

At a Bankruptcy Court hearing on May 14, 2009, ACN received court approval of the procedures for the proposed sale of the assets of ACN and its subsidiaries, as well as final approval of the $5 million debtor in possession credit facility.

ACN will continue to operate its businesses during the restructuring process. There will be no change in the Company’s day to day operating activity and its newspapers will continue to serve their local communities, readers and advertisers without interruption.

American Community Newspapers Inc.:

ACNI today filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. ACNI, which is the holding company of ACN, does not have any operating assets.