The publisher of the Portland (Maine) Press Herald, Kennebec Journal and Morning Sentinel is having trouble paying its debts, it seems.
MaineToday Media owes $7.6 million to lender RBS Citizens; meanwhile, it’s being sued to return $124,061 worth of paper to the McGrann Paper Corporation, which alleges that the company began “stockpiling” paper when it knew it would not be able to pay its debts.
Now MTM can’t even return the paper because RBS has placed a lien on all of MTM’s assets.
“We at MaineToday Media take all of our relationships with vendors seriously and we’re working to resolve these issues as quickly as possible,” MTM CFO Patrick Sweeney told the Portland Daily Sun.
According to media critic Al Diamon, part of the problem might have been former CEO Richard Connor, who drew a salary of close to $1.5 million a year.
MTM is now in the process of reaching new debt agreements with some of its creditors and renegotiating labor agreements with its unions, which will probably mean salary cutbacks or furloughs, at least in the short term.