Four Papers' Bankruptcies Result in 75% Debt Reduction
Papers exiting bankruptcy have shed 75% of their obligations to creditors, reports journalism vet and “Newsosaur” blogger Alan Mutter.
Mutter looked at four major newspaper publishers that recently emerged from Chapter 11: MediaNews, Minneapolis Star Tribune, Morris Publishing and Journal-Register.
Collectively, the foursome stiffed their lenders for $1.9 billion, or 74.5% of their outstanding debt. In most cases, lenders were persuaded to forgive a portion of the debt in exchange for an ongoing ownership stake in the companies, which will have value only if the companies can be sold somewhere down the line for more than they are worth today.
Mutter
WORK SMARTER - LEARN, GROW AND BE INSPIRED.
Subscribe today!
To Read the Full Story Become an Adweek+ Subscriber
Already a member? Sign in