AVISTA FACES DEBT SQUEEZE AT STAR TRIBUNE (Minneapolis Newspaper)

NY Post ^ | 2 June 2008 | ZACHERY KOUWE

[shrinkermd]

June 2, 2008 -- The beleaguered Minneapolis Star Tribune has asked creditors to delay its debt payments for six months while it cuts costs and tries to rescue its ailing balance sheet.

But "The Strib," as it is known locally, is meeting resistance from creditors that want the owners to inject $50 million of new equity into the company before granting any concessions, sources said.

Avista Capital Partners, the New York private-equity firm that bought The Strib for $530 million about 15 months ago, recently hired the Blackstone Group to negotiate with creditors.

Requesting such a delay, known as forbearance, is typical for firms in a cash crunch, but creditors typically grant forbearance for only about 60 days.

The Strib recently said it would cut 10 percent of the newsroom budget, or $2.5 million, as part of an overall plan to eliminate $20 million in expenses by June 30.

Last month, Avista told its investors it has written down its $100 million equity investment in The Strib by 75 percent.

[shrinkermd]

FWIW. This newspaper, until recently, determined who was and who was not elected to major offices in Minnesota. If you didn't get their endorsement, then you had to make sure they were not ardent supporters of the opposition.

Times are a changing and even Garrison Kellor can't hang onto liberalism without consequences.

[ConservativeMind]

Yeah, continue “infusing” tens of millions of dollars. Keep throwing good money after bad.

Die, liberal scum.

[MNJohnnie]

I wish I could say I felt sorry for the Commie Strib but I don’t like to lie.

Petty and childish of me but there is such a thing as justice.

[mplsconservative]

Nothing petty and childish about it, MNJohnnie.

This piece of trash paper has deserved to just go away for at least 20 years.

Good riddance to bad garbage.

[Eric in the Ozarks]

It would be interesting to compare the Strib’s circulation with the growth at suburban papers like Shakopee, Prior Lake, etc.

[Minn]

Nobody, except Nick Coleman, will even notice when it’s gone.

[Oldeconomybuyer]

...Avista told its investors it has written down its $100 million equity investment in The Strib by 75 percent...

Buy high, sell low. Anyone investing in old media gets what they deserve.

[MNlurker]

i almost wish I was still living there to watch its slow miserable death...guess i gotta wait for the same this to happen here to the milwaukee journal sentinel

[ken5050]

Did you see this?

[mplsconservative]

You’re in Millwaukee now? My condolences. :)

[quantim]

Requesting such a delay, known as forbearance, is typical for firms in a cash crunch, but creditors typically grant forbearance for only about 60 days.

Bummer for them, it won't keep them afloat for the GOP convention in their backyard.

[Eric in the Ozarks]

Yes. I remember when I canceled the daily and Sunday Strib, finally, and how good it felt.

[abb]

ping

[abb]

ping

[MovementConservative]

Avista needs to dump more $ into this rathole. Is there a way to electronically send the double middle finger to the Strib editorial board and publisher? Barring that, maybe a Nelson Muntz picture with his trademark “Ha ha”.

[abb]

http://www.youtube.com/watch?v=KTLx76Gn9_Y

[Fireone]

You’re right, but Don Shelby will cry about it
on the air for the next ten years.

[Colonel_Flagg]

But "The Strib, Red Star Tribune" as it is known locally,

That really needed to be fixed.