Two investors in the US newspaper publishing company Freedom Communications (FC) have asked a court to put the California firm into receivership, claiming it is insolvent.
Abbey Financial and Old Colony 2012 Investment Fund said in a complaint filed with the Delaware chancery court on 30 October that FC requires independent oversight.
They accuse the company's co-owners, Aaron Kushner and Eric Spitz, of mismanagement by allowing one of the firm's creditors, Silver Point Finance, to have too much influence over financial decisions, such as a planned sale of a plot near the headquarters of its main newspaper title, the Orange County Register, in Santa Ana.
The investors have accused Kushner and Spitz of having "abdicated their independent decision-making responsibilities in favour of the company's lender."
An FC spokesman called the petition "meritless and unfounded" and said the two investors supported the sale of the Santa Ana land a year ago.
"There is no basis for the appointment of a receiver for the land sale, and the company is not considering filing for bankruptcy and will defend itself vigorously," he said.
Source: LA Times
