Rcapital – owners of celebrity photo agency Splash News – have reached an agreement to buy UK local newspaper publisher Archant.
UPDATED: Rcapital say: “We are incredibly pleased to have worked alongside Archant’s management team and KPMG to put forward a plan that will restructure finances and inject fresh capital into one of Britain’s oldest local newspaper brands. We are hopeful, that with the support of its creditors, Archant will emerge from this challenging period as a stronger business that continues to provide a vital service to its clients and readership. Today’s announcement marks an exciting next phase for both Archant and Rcapital – I am looking forward to working with Simon and his team to deliver on the transformation plan.” commented Chris Campbell, partner at Rcapital.
Chris Pole, partner at KPMG and proposed nominee of the CVA, added: “Archant has a proud heritage stretching back more than 170 years, publishing a number of titles and websites that lie at the cornerstone of regional communities.
“If approved, the CVA proposal represents an opportunity for the business to move forward on a more sustainable financial footing, with new investors who are committed to backing the transformation plan already underway.”
Archant needs to secure at least 75% creditor approval by value for the CVA for it to proceed. Detailed proposal documents will be made available to creditors via a dedicated website. Consultations have already taken place with key creditors, and KPMG will spend the coming weeks in further talks with them to ensure they understand the full detail of the proposal.