Cash-strapped freesheet publisher Metro International is selling off loss-making Metro USA, its U.S. newspaper business, to Seabay Media, a company formed by its former CEO Pelle Törnberg. The deal means a new owner for the New York and Philadelphia editions of the commuter paper, plus the Boston edition, of which it owns 51 percent in a partnership with the Boston Globe. The three have a combined 590,000 daily circulation and 1.2 million readers. Seabay will continue to publish the Metros under license from the London-based Swedish group, which will continue to sell their advertising and will save it €2 million ($2.72 million) a year. Release.

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With no circulation sales to fall back on, Metro International has been seeking cash after getting walloped in the advertising downturn. Stripping out income from selling 35 percent of its native Swedish operations to Schibsted last year, operating losses widened to €20 million ($27.2 million) last year, leading it to breach its banking covenants. The company admitted Monday it “does not have sufficient working capital for the next 12 month period,” so it’s trying to raise €50.3 million through a rights issue, partly to repay a €28.7 million ($39 million) debt. The company closed its Spanish papers in January. All told, the Spanish and US operations posted a €10.7 million ($14.5 million) loss in ‘08. The company also says it’s moving its London headquarters to Stockholm. Release.