CHARLESTON, W.Va. - Champion Industries Inc. completed its $10 million sale of the Huntington Herald-Dispatch newspaper to a new media firm run by a Cabell County lawmaker.
Champion sold all of its newspaper assets to Democrat Delegate Doug Reynolds' HD Media Company LLC Friday, according to a filing with the U.S. Securities and Exchange Commission.
Champion officials signed a letter of intent June 18 to sell the newspaper to Reynolds, who is the son of Champion Chairman and CEO Marshall Reynolds.
The sale price is just a fraction of the $77 million Champion paid for the newspaper when it bought it from GateHouse Media in 2007.
Champion, the parent company of Champion Printing and Capitol Business Interiors, financed much of that purchase with debt, which has strained the company's balance sheet in recent years.
The company still owed $36.5 million from the purchase as of its most recent quarterly earnings filing in April.
The company received a notice of default on its credit line from Fifth Third Bank of Huntington earlier this year. It later negotiated a forbearance agreement with the bank to delay action on the debt default until after Sept. 30.The delay was designed to give the company more time to shore up its balance sheet and address its debt. The company said it would use the cash from the newspaper sale to pay down its debt and revolving credit line.