Frankly, given the $136 million in debt, plunging revenue, stock delisting, paper killing and repeated layoffs, the only thing that's surprising is that it took them so long.

American Community Newspapers publishes 40-some papers in Minnesota, including many suburban weeklies under the "Sun" banner. The press release's headline (below) is ironic, given how much operations have been affected already. And the "About" section's statement on "affluent, high-growth" markets only hints at the reckless over-leveraging that such positioning inflamed.

Nevertheless, employees say no one was laid off following the Tuesday afternoon internal announcement.

The release refers to a "363 sales process" and I will entertain crowdsourcing from knowledgeable folks. (Email address is at right.) It looks like the creditors will likely take over as the "stalking horse" bidder, though others can top their price.

The creditors are providing $5 million in debtor-in-possession financing, which is often because there's not cash to fund operations during the bankruptcy process. (The Strib, by the way, didn't need such financing; management has squirreled away enough to keep things running.)

Here's ACN release:

- No Impact on Day to Day Operations: Newspapers and Web Sites to Continue Serving Their Local Communities -

DALLAS, April 28 /PRNewswire-FirstCall/ — American Community Newspapers Inc. (Pink Sheets: ACNI) today announced that its subsidiary operating company American Community Newspapers LLC ("ACN" or the "Company") has voluntarily filed petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware.

ACN will continue to operate its businesses during the reorganization process. There will be no change in the Company's day to day operating activity and its newspapers will continue to serve their local communities, readers and advertisers without interruption. ACN's secured creditors will be providing a $5 million debtor in possession credit facility. In addition, the secured creditors are the contemplated stalking horse bidder for ACN's assets.

"A difficult economic environment and weak advertising market have created a number of challenges for our industry and our company," said Gene Carr, Chairman and Chief Executive Officer of ACN. "While we have proactively managed our business by right sizing our cost structure and driving efficiencies to maximizing our cash flows our operations are not able to support our current capital structure. As a result we intend to reorganize via the 363 sale process with continuing support from our lenders which, if approved, will reduce our debt. This will place us in a better position to execute on our business plan and serve our communities. We worked with our financial advisors to explore a wide range of alternatives before making this filing, however the decision to proceed with the reorganization was determined to be the best alternative."

Mr. Carr concluded, "The community newspaper business model places us in the unique position to deliver truly local content and be the mainstay of the markets we serve. The value we provide has been recognized many times over the years with our employees, newspapers, Web sites and niche publications winning numerous awards. Our readers and advertisers are our most important assets and we are committed to providing them with outstanding service in the months and years ahead."

About American Community Newspapers

ACN is a community newspaper publisher in the United States, operating within four major U.S. markets: Minneapolis - St. Paul; Dallas; Northern Virginia (suburban Washington, D.C.); and Columbus, Ohio. These markets are some of the most affluent, high growth markets in the United States, with ACN strategically positioned in many of the wealthiest counties within each market. ACN's goal is to be the preeminent provider of local content and advertising in any market it serves.

Here's a list of the publications affected:

Apple Valley / Rosemount Sun Current
Bloomington Sun Current
Brooklyn Center Sun Post
Brooklyn Park Sun Post
Burnsville / Savage Sun Current
Eagan Sun Current
East Minnetonka Sun Sailor
Eden Prairie Sun Current
Edina Sun Current
Excelsior / Shorewood / Chanhassen Sun Sailor
Blaine / Spring Lake Park Sun Focus
Fridley / Columbia Heights Sun Focus
New Brighton / Mounds View Sun Focus
Roseville / Falcon Heights Sun Focus
New Hope / Golden Valley Sun Sailor
Plymouth East Sun Sailor
Plymouth West Sun Sailor
Richfield Sun Current
Robbinsdale / Crystal Sun Post
Hopkins Sun Sailor
Lakeville Sun Current
South St. Paul / Inver Grove Heights Sun Current
St. Louis Park Sun Sailor
Wayzata / Orono / Long Lake Sun Sailor
West Minnetonka / Deephaven Sun Sailor
Stillwater Evening Gazette
The Valley Life
Champlin / Dayton Sun Press
Delano Eagle Sun Press
North Crow River Sun Press
Osseo / Maple Grove Sun Press
Rockford Area News Sun Press
South Crow River Sun Press
Enterprise
Melrose Beacon
Carver County News
Gold Miner
Norwood Young America Times
The Laker
The Pioneer
Waconia Patriot
Monticello Times
Monticello Shopper