Sun-Times shareholder continues to seek support for its plan to control company's board

By Lisa Kerner

Charlotte, N.C., Dec. 19 - Davidson Kempner Capital Management LLC once again asked Sun-Times Media Group Inc. shareholders to sign the consent solicitation to reconstitute the company's board of directors.

The company is in crisis due in part to the failure of the board, said Davidson Kempner.

Davidson Kempner told shareholders that the once venerable Sun-Times has "deteriorated significantly" and said a bankruptcy could occur within the next 12 months.

As previously reported, Davidson Kempner seeks to reduce the Chicago-based newspaper company's board to five directors from seven and put forth its own slate of director nominees.

Davidson Kempner wants a reconstituted board to arrest cash burn, resolve an Internal Revenue Services claim and strategically reposition Sun-Times, according to a Dec. 17 letter from the investor to shareholders.

In addition to current independent director Robert B. Poile, Davidson Kempner is nominating:

• Jeremy L. Halbreich, former president and general manager of the Dallas Morning News;

• Robert A. Schmitz, a partner at Quest Turnaround Advisors; and

• Michael E. Katzenstein, founder and principal of CXO, LLC, a restructuring and turnaround management firm.

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