Posted on 01/16/2010 9:30:40 AM PST by opentalk
The publisher of the Denver Post, The Detroit News, the Salt Lake Tribune and 51 other daily newspapers says it will declare bankruptcy.
Affiliated Media Inc., the holding company for the MediaNews Group of newspapers, based in Denver, said Friday it has reached a deal with its senior creditors to carry out a pre-packaged Chapter 11 bankruptcy as part of a financial restructuring, the News reported.
The company said in a statement that the reorganization won't affect newspaper operations and is being done to reduce Affiliated Media's debt by about $765 million to $165 million through a debt-for-equity swap.
"In contrast with most filings, where creditors may oppose the proposed plan of reorganization, a prepackaged filing means that affected creditors have already seen and accepted the plan prior to the time it is filed, so that it can proceed with little debate or negotiation, and can swiftly win approval from the court," the statement said.
"This step will put us on a positive financial path and won't have any impact in Detroit or at any of the other MediaNews Group newspapers," Jonathan Wolman, editor and publisher of The Detroit News, said.
What happened to the obligatory “Dinosaur Death Watch”?
Thanks for NOT putting the ignoramus Dinosaur Media Deathwatch commentary in the title.
See post #3. :)
I like the Dinosaur Death watch myself. With that said, The Detroit News closing sort of makes that place like a black hole. With no information leaving.
51 daily newspapers has to be enticing to him.
51 daily newspapers has to be enticing to him.
The article says they are reorganizing not closing. This bankrupty is to dump some of their debt but they are not going out of business.
The only people making money on newspapers these days are lawyers!
You are bipolar but you should read the story.
No papers will close, this is just an equity for debt swap.
Creditors will take stock for debt and they have already agreed to the deal.
They probably think this is better than nothing.
You are not the first to make this observation so I guess I should give it some credence.
ROFL
Well, perhaps this dinosaur isn’t dying yet. But it’s another signpost on the journey. I certainly have no objection to the Dynosaur Deathwatch label. After all, one object is to try to get through their impenitrable skulls. I don’t want newspapers to die. It would be better if they woke up and started reporting the NEWS again. But if they don’t wake up, they’ll certainly die.
Paging ABB, Paging ABB...
Did the paper you write for already fold?
Did the paper you write for already fold?
A second bankruptcy is just a matter of time and the new equity holders will get nothing just like the old equity holders. They would be better off staying bond holders and going through liquidation if they want to get something. MBAs are taught how to take off and fly a business, but no one knows how to land. They always fly until there's no more fuel then crash straight down into the ground with no survivors.
LOL!
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.