Posted tagged ‘Sam Zell’

Chicago Sun-Times Files For Chapter 11

March 31, 2009

The Sun-Times Media Group, which publishes the Chicago Sun-Times newspaper, said this morning that it had filed for bankruptcy protection.

From Dow Jones:

Sun-Times Media Group Inc. (SUTM) has filed for bankruptcy protection, the latest casualty of an extended advertising slump that is reshaping the newspaper industry.

It joins other media companies such as Tribune Co. (TRBCQ), the Chicago-based publisher of the Los Angeles Times and Chicago Tribune, which filed under Chapter 11 late last year after it was unable to cover interest on bank debt it picked up as part of Sam Zell’s takeover of the company.

The newspaper industry has seen bankruptcy filings, asset sales, layoffs and other cost-cutting moves this year as the economic downturn worsened already-declining ad sales. The ad slump has deepened since late last year, spreading to television broadcasters and Internet media sites.

Sun-Times Media operates 59 newspapers and related Web sites, including the Chicago Sun-Times.

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Mark Cuban Charged With Insider Trading

November 17, 2008

The SEC has sued Dallas Mavericks owner Mark Cuban over alleged insider trading, this according to a complaint filed today in federal district court in Dallas. The agency alleges that in June 2004, Cuban was invited to get in on an upcoming public stock offering by Mamma.com after he agreed to keep the information private.

From Reuters:

Cuban, one of the five finalists to buy the Chicago Cubs pro baseball team, faces civil charges by acting on nonpublic information and selling shares of Mamma.com to avoid more than $750,000 in losses, the SEC alleged.

According to the SEC, Mamma.com invited Cuban to participate in a stock offering that would be conducted at a discount to the market price after he agreed to keep the information confidential.

However, within hours of receiving information, Cuban called his broker and told him to sell his entire position in the company, the SEC alleged.

When the offering was publicly announced, Mamma.com’s stock price dropped 9.3 percent from the prior day’s closing price.

Calls to Cuban’s lawyers were not immediately returned.

From CNN Money:

Billionaire entrepreneur Mark Cuban, owner of the National Basketball Association’s Dallas Mavericks, was charged Monday by the Securities and Exchange Commission with insider trading.

According to the SEC, Cuban sold 600,000 shares of Internet search company Mamma.com in June 2004 using non-public information.

Cuban is accused of calling his broker and instructing him to sell all of his stock from Mamma.com after receiving the confidential information from the company.

The SEC said Cuban learned that the company would raise money through a public offering, and he knew the stock price was about to fall.

When the offering was made public, the stock fell 9.3%, and Cuban avoided losses in excess of $750,000 by selling stock the day before, the SEC report said.

“As we allege in the complaint, Mamma.com entrusted Mr. Cuban with nonpublic information after he promised to keep the information confidential,” Scott W. Friestad, Deputy Director of the SEC’s Division of Enforcement said in the report. “Less than four hours later, Mr. Cuban betrayed that trust by placing an order to sell all of his shares.”