Tribune Publishing, which owns the Los Angeles Times, offered $3 million on Wednesday to fund Freedom Communications’ bankruptcy case in exchange for the right to bid on its assets during the sale process.
The offer, made during Freedom’s first bankruptcy hearing, is a play by Tribune to acquire the Orange County Register, Freedom’s flagship publication.
Tribune would ask to be paid back if Freedom’s assets are sold elsewhere.
Freedom declared Chapter 11 bankruptcy on Sunday. Chief Executive Richard Mirman and Orange County developer Mike Harrah aim to buy the company’s assets out of bankruptcy in a court-supervised auction.
Freedom will continue to operate uninterrupted as Mirmran hopes to wrap the bankruptcy process in 60 to 90 days.