Newspapers struggling with debt loads

The economic crisis is hitting newspapers hard — but for a reason you might not consider. Reports WSJ (free link): “Several major chains, including Tribune Co., MediaNews Group Inc. and McClatchy Co., have significant debt loads. As debt conditions sour, interest rates will go up for many papers, and lenders will impose onerous conditions. Some publishers risk default or even a trip into bankruptcy court.” This week the Star-Tribune says it skipped a debt payment and Gannett said it has tapped its credit line.