Star-Advertiser owner restructuring, sale of company in the works

Jan. 15—The owner of the Honolulu Star-Advertiser has entered a court-supervised restructuring to reduce debt and to position the company for a possible sale to a partnership that plans to invest in quality, impactful journalism in Hawaii.

Black Press Ltd. announced today that as part of its restructuring, its two largest existing debt-holders — Canadian institutional investors Canso Investment Counsel Ltd. and Deans Knight Capital Management Ltd. — along with community media company Carpenter Media Group would join forces in the potential purchase.

The proposed sale would include a capital injection from the potential new owners, to allow Black Press companies and newspapers, including Oahu Publications Inc. and the Star-Advertiser, to continue operating in the markets they serve, according to the announcement.

Any sale resulting from the restructuring is expected to be completed by March 15. Financial terms of the transaction were not disclosed.

"We are a legacy company committed to our community, and our operations are expected to continue uninterrupted," Dennis Francis, president and CEO of Oahu Publications and publisher of the Honolulu Star-Advertiser, said in a news release. "Our ability to publish the best content is the result of having the best people. I'm grateful that Carpenter Media Group as well as Canso and Deans Knight share our dedication to local readers, local talent and local stories."

In addition to the Star-Advertiser, OPI operates a diverse group of print and digital publications — including MidWeek, The Garden Island, Hawaii Tribune-Herald and West Hawaii Today — and various specialty magazines.

Todd Carpenter, principal and chairman of Carpenter Media Group, said his company "is driven to serve and develop communities through excellent local journalism as well as to develop team members both personally and professionally."

"These are commitments we share with Dennis Francis whose continued leadership ensures the enduring strength of Oahu Publications," he said. "We recognize OPI employs many of Hawaii's most talented professionals in journalism, marketing and distribution with whom we're eager to work in the years ahead."

Carpenter Media Group owns newspapers in Texas, Louisiana, Mississippi, Tennessee, Georgia, North Carolina, Virginia, and Kentucky.

Ontario, Canada-based Canso Investment Counsel was established in 1997 and is a private company owned by investment professionals, with total assets under management of over CA$40 billion as Sept. 30.

Founded in 1992, Deans Knight Capital Management is an independent, employee-owned, asset management firm advising families, foundations and institutions.

The partners would assume control of British Columbia-based Black Press's print publications, which reach more than 4.5 million readers across Canada and the United States, and include 150 daily and weekly newspapers, magazines, and websites.

Carpenter Media Group Chairman Todd Carpenter, 54, said he plans to continue to work from Natchez, Miss., where the company is based, and from Tuscaloosa, Ala. Tim Prince, 50, of Mountain Brook, Ala., is the company's chief executive officer, and has worked in community media for 35 years.

Carpenter said he was happy to reconnect to Hawaii, its people and culture. "I am fortunate to have had extended time visiting and learning the culture, during my mother, Cecil Ann Sayles', service as director of human resources for VA Pacific Islands in the 1990s and early 2000s. She and we came away from that time with a deep respect for the islands, their people and traditions."

"We take very seriously our responsibilities to each community served and to team members, readers and customers who rely on us," Carpenter said. "We will work hard to merit their confidence and to build on the strong foundations put down by those who came before us."

Once a deal is finalized, Carpenter Media Group will assume ownership of the Star-Advertiser, Hawaii's largest newspaper, with a storied history in Honolulu journalism dating back to the mid-19th century that includes its predecessor newspapers starting with The Pacific Commercial Advertiser, the Hawaiian Star, the Evening Bulletin, the Honolulu Advertiser and the Honolulu Star-Bulletin.

To this day, the Star-Bulletin's Dec. 7, 1941, "WAR" edition remains among the most famous front pages in American newspaper history.

In today's announcement, Star-Advertiser publisher Francis praised Black Press founder and owner David H. Black, who saved the Star-Bulletin from imminent closure over two decades ago.

"David Black's contributions to Hawai'i journalism cannot be overstated," said Francis. "It was his leadership in 2000 that saved the Star-Bulletin from ceasing publication, resulting in the 2010 merger with the Advertiser which allowed both newspapers to survive as the Honolulu Star-Advertiser. A great deal of gratitude is owed to David Black for playing an integral role in preserving major journalism in our state."