Two More Media Companies End 2009 In Bankruptcy

heartland.jpgOne day after Citadel Broadcasting Corp. filed for bankruptcy, two other media companies joined the radio group in Chapter 11.

Yesterday, another radio owner, NextMedia Group Inc., and newspaper publisher Heartland Publications LLC, both filed for bankruptcy protection in Delaware Bankruptcy Court.

NextMedia, which owns 36 AM and FM radio stations and over 5,000 outdoor advertising spaces, reached an agreement with its lenders before entering Chapter 11, and hopes to restructure its debt down to $128 million through the preplanned process.

Heartland, the owner of 23 papers and other pubs, also agreed with its lender and plans to cut its debt by more than half through Chapter 11 reorganization.

While bankruptcy is certainly a last resort, these sorts of pre-negotiated and pre-packaged bankruptcies usually get resolved quickly without much disruption to employees. And restructuring crippling debt can ensure that these struggling companies have more of a chance for success in the New Year. So maybe it’s not all bad news after all.

Heartland, Owner of 23 Papers, Declares BankruptcyEditor & Publisher

Previously: Radio Giant Citadel Files For Chapter 11