Posted on 07/01/2009 8:12:06 PM PDT by bruinbirdman
The country’s third-largest newspaper chain looks perilously close to bankruptcy.
An agreement between McClatchy Co. and its banks puts the country’s third-largest newspaper chain at risk of defaulting on its debt by the end of the year, according to credit analysts. If that happens, Bank of America and other creditors could either show leniency and rework the terms of their agreement or push the publisher of 30 daily newspapers, including the Miami Herald and Sacramento Bee, into bankruptcy.
In the current environment, banks are less likely to sustain companies on life support, said Shelly Lombard, an analyst at Gimme Credit. She pointed to the example of Idearc, a Yellow Pages publisher, which breached debt agreements and filed for bankruptcy in March. “Banks are starting to pull the plug on companies,” she said. “It used to be that banks worked with the clients because they were better alive than dead. Some of them may not be worth it.”
Elaine Lintecum, the company’s treasurer, declined to comment, citing a quiet period before its earnings announcement. Lintecum said McClatchy will address its financial health during the earnings call in late July.
Like other newspaper owners, McClatchy, based in Sacramento, Calif., has suffered from declining advertising sales, which dropped 30% in the first quarter from a year earlier. What’s different about McClatchy is that it shoulders $2 billion in debt, much of it a result of the $4.6 billion acquisition of Knight Ridder in 2006.
Gary Pruitt, McClatchy’s chief executive, has slashed costs through laying off about a third of employees, cutting the dividend on its stock and trimming pay (see McClatchy Aims To Have The Last Newspaper Standing).
But a major attempt to cut its debts came up short. The company had asked bondholders to hand over $1.15 billion in existing bonds for
(Excerpt) Read more at forbes.com ...
Gee, the bondholders wouldn’t take 25 to 33 cents on the dollar. I wonder why?
Maybe all the “mercy” they need is a figurative bullet to put them and us out of their misery.
They shoot horses, don’t they?
I’d love to be on the banks of the river at the falls waving buh bye as McClatchy goes over.
I see that name, and I see red.
Ring a ding happy happy joy joy ping a ling.
We need to figure out a way to insure CNN (Time_Warner), CBS (Viacom), MSNBC + NBC (General Electric), ABC (Disney) join then.
I think free Internet TV may a possibility. They get about $1 a month for each cable or sat TV account plus their advertising revenue.
Great news BUMP!
Die, Democrat newspapers. Hurry up and die.
I want everybody associated with the Democrat newsrooms to lose their jobs, their homes, their life savings, and their families. For the damage they have done to America they deserve nothing less.
Geez I stopped subscribing when I couldn’t find any balance in the papers. Putting one editorial in Sunday’s paper didn’t seem balanced, let them all perish if they don’t have readership.
I have a hard time trusting someone who is an analyst for Gimme Credit.
Anyone notice that the excerpt list is getting shorter?
yitbos
The socialist propaganda pushers deserve to go under.
HA HA! Why you being so soft?
McClatchy could reverse its fortunes nearly overnight by changing its format to the one used by Fox News. Report and write objectively. Tell the truth. Write interesting articles about both sides of the political spectrum without favortism. Dispense with the tabloid journalism now practiced.
There would be a period of waiting as people on the right not ready to entertain “a willing suspension of disbelief,” wait to see if the CHANGE is true. Nonetheless, they’d HOPE for truth from an outfit that has never practiced it.
By the end of the year, they would have a positive outlook and get the help they need from their financiers.
Next week, the sun will begin to rise in the West.
I hadn’t noticed it was getting shorter, but now that you mention it, THAT’S A GOOD THING! They can all just DIE!
yitbos
"Perhaps McClatchy would not suffer the curse of JR if they had not insisted FR excerpt their stuff.
Anyone notice that the excerpt list is getting shorter?"
Our local paper (Star-Telegram, DFW) is owned by McClatchy and it sure shows its leftward tilt. They have recently cut the amount of pages in the paper to the point where a Penny Saver is bigger. Received a letter saying that they are raising the rates. Yup makes sense to me, reduce the product, charge more and tell people what a deal they are getting. Will say one thing, they are true to their leftest leanings of tax more give less. They recently had the never to print a article saying that they were in great shape, guess not.
Didn’t Ruth Buzzy Ginsburg call for sympathy?
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