Posted on 01/30/2009 2:03:44 PM PST by george76
Letter alleges improper payment of newsroom costs.
The Denver Post violated its agreement with Rocky owner E.W. Scripps when it borrowed $13 million from their jointly owned operating agency to cover The Post's newsroom payroll, Scripps wrote in a letter to Post executives last month.
"We request that this practice cease and that the Post find a way to fund its editorial payroll without resorting to this . . .," Scripps executives Rich Boehne and Mark Contreras wrote.
The letter was dated Dec. 9, five days after Scripps announced it would sell the Rocky and would pursue other options, including closure, if it couldn't find a buyer.
"We continue to reserve our rights to pursue remedies for the several breaches caused by these practices or to assert them in connection with any future legal proceedings," they added in the letter sent to top Post executives Dean Singleton and Joseph "Jody" Lodovic.
The letter also reveals that the agency's credit has dried up and the banks will not lend it any more money. And it says that Scripps does not believe that The Post is able to repay the borrowed money "promptly."
Scripps says the Denver Newspaper Agency borrowed money from its banks then loaned it to The Post to make its payroll. By the end of November, The Post owed the agency $13 million...
The agency's 2007 financial statements, filed by MediaNews with the Securities and Exchange Commission last year...
(Excerpt) Read more at rockymountainnews.com ...
Sounds like the Post is in worse shape than the Rocky
Post and News are dead and gone. Just bugs picking at the carcass now.
I only read their online stories and then only for the humor of the crazy bias.
Not sure why that formatted like that....?
I would think the Post is among the death watch for newspapers even though it’s privately held. Good.
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