Stillwater Gazette Moves TMC Distribution Day

The Stillwater Gazette, an American Community Newspaper publication, announced that it is moving its TMC product Valley Life from a Wednesday distribution to a Saturday distribution effective November 28th, 2009.

Last to Enter Bankruptcy, ACN is First to Emerge

American Community Newspapers (ACN), which in April became the seventh and most recent newspaper company to declare bankruptcy in the industry recession, has become the first to emerge from its protection.

In a memo to employees, CEO Gene Carr said the chain closed the sale to its creditors on Friday. ACN's emergence from bankruptcy was first reported Monday by MinnPost media writer David Brauer.

ACN's prepackaged bankruptcy plan was approved by a judge in Delaware earlier this month. Under the plan, the chain --which publishes the Stillwater (Minn.) Gazette and clusters of community papers in Texas, Ohio and suburban WashingtonD.C. -- was for $32 million plus $5 million in post-bankruptcy financing to its creditors, including the General Electric Corp. andthe Bank of Montreal.

At the time of its bankruptcy filing, ACN said it had $102 million in debt.

The chain’s parent company will be known as American Community Newspapers II.

“Under our new ownership, our debt has been substantially reduced, which places us in a much better position to execute onour business strategy, serve our communities, and provide ample opportunities for our employees,” Carr wrote in the memo.

Plano Star Courier & McKinney Courier Gazette change Distribution Days

The Plano Star Courier and the McKinney Courier Gazette, both publications under American Community Newspapers, have changed this distribution days. Effective May 5th, 2009, both publications will publish only on Wednesday, Thursday, Friday and Sunday per Bill Weaver, Group Publisher. The Sunday edition will be the 'weekend edition'.

These changes are due to the restructuring of American Community Newspapers as it goes through its Chapter 11 reorganization.

American Community Newspapers - Chapter 11

American Community Newspapers LLC Voluntarily Files Petition for Reorganization

- No Impact on Day to Day Operations: Newspapers and Web Sites to Continue Serving Their Local Communities -

DALLAS, April 28 /PRNewswire-FirstCall/ -- American Community Newspapers Inc. (Pink Sheets: ACNI) today announced that its subsidiary operating company American Community Newspapers LLC ("ACN" or the "Company") 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 will continue to operate its businesses during the reorganization 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. ACN's secured creditors will be providing a $5 million debtor in possession credit facility. In addition, the secured creditors are the contemplated stalking horse bidder for ACN's assets.

"A difficult economic environment and weak advertising market have created a number of challenges for our industry and our company," said Gene Carr, Chairman and Chief Executive Officer of ACN. "While we have proactively managed our business by right sizing our cost structure and driving efficiencies to maximizing our cash flows our operations are not able to support our current capital structure. As a result we intend to reorganize via the 363 sale process with continuing support from our lenders which, if approved, will reduce our debt. This will place us in a better position to execute on our business plan and serve our communities. We worked with our financial advisors to explore a wide range of alternatives before making this filing, however the decision to proceed with the reorganization was determined to be the best alternative."

Mr. Carr concluded, "The community newspaper business model places us in the unique position to deliver truly local content and be the mainstay of the markets we serve. The value we provide has been recognized many times over the years with our employees, newspapers, Web sites and niche publications winning numerous awards. Our readers and advertisers are our most important assets and we are committed to providing them with outstanding service in the months and years ahead."

About American Community Newspapers

ACN is a community newspaper publisher in the United States, operating within four major U.S. markets: Minneapolis - St. Paul; Dallas; Northern Virginia (suburban Washington, D.C.); and Columbus, Ohio. These markets are some of the most affluent, high growth markets in the United States, with ACN strategically positioned in many of the wealthiest counties within each market. ACN's goal is to be the preeminent provider of local content and advertising in any market it serves.

Minnesota Sun Publications - a closing

The Minnesota Sun Publications closed the Ramsey County Sun Focus, a free Thursday publication, in March 2009, per Dennis Thomsen of ACN Newspapers. The Sun Focus covered Ramsey county, Minnesota, and more specifically zip codes in the St Paul area.