StarBulletin.com

Court asked to delay sale of the Advertiser


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POSTED: Thursday, April 08, 2010

A circuit judge is scheduled to hear arguments tomorrow to delay the sale of the Honolulu Advertiser to longtime rival Honolulu Star-Bulletin.

The motion for a preliminary injunction was filed in court Tuesday and will be heard at 1:30 p.m. tomorrow by Judge Rom Trader. It stems from a complaint filed by four longtime Advertiser employees and members of the International Longshore and Warehouse Union, Local 142, who claim they were not given the required 60-day notice of their termination.

Plaintiffs' attorney Rebecca L. Covert said they are asking the court to delay the sale until employees are given a full 60-day notice so as not to cause “;irreparable”; injury. “;The complaint does not seek to halt the sale,”; Covert said.

Oahu Publications Inc., parent company of the Star-Bulletin and MidWeek, announced on Feb. 25 that it had struck a deal with Gannett Co. to buy the Advertiser.

About 600 Advertiser employees were notified by Gannett on March 9 that they would lose their jobs when the deal closed between Monday and the end of the month. However, the letter also said most employees would be offered jobs at an arm's-length management company hired by Star-Bulletin owner David Black to handle the transition.

Honolulu Advertiser Publisher Lee Webber, who could not be reached for comment, filed a declaration with the court Monday that said workers would be paid for the full 60 days regardless of when the Advertiser sale closes.

To satisfy antitrust requirements, Oahu Publications has offered the Star-Bulletin for sale. Three suitors have emerged. The bids are being reviewed by the company, the U.S. Department of Justice and the state attorney general.

If the Star-Bulletin does not sell, Black plans to operate both newspapers during a 30- to 60-day transition period, after which he would merge the dailies into one paper called the Honolulu Star-Advertiser.

The three suitors for the Star-Bulletin are state Sen. Sam Slom and Hawaii Reporter Editor Malia Zimmerman in a joint bid, self-described entrepreneur Frederick “;Derek”; Harris of the Big Island, and the Anthem Newspaper Group.

Texas businessman Brian Ferguson, managing principal of Anthem, said yesterday that the company made several proposals; however, none are for the Star-Bulletin alone.

“;We do not believe that the Star-Bulletin as a stand-alone entity is viable going into the future,”; Ferguson said. “;David Black doesn't believe the Star-Bulletin standing alone is a viable entity going into the future and it's very clear that no publisher in the U.S. believes that the Star-Bulletin is viable as a stand-alone entity. It's a matter of economics, not good journalism.”;

Ferguson declined to discuss details of his offer. However, he said the company may consider “;including MidWeek as part of one of our proposals.”;

Dennis Francis, publisher of the Star-Bulletin and president of Oahu Publications, has said the Justice Department approved excluding MidWeek from the Star-Bulletin sale.