Media General to face debt crunch within weeks
Rick Edmonds by Rick Edmonds Published Jan. 26, 2012 5:01 pm Updated Jan. 26, 2012 5:40 pm
On Thursday, Media General — publisher of the Richmond Times-Dispatch and the Tampa Tribune — reported a net loss for the fourth quarter of 2011 and for the full year.
That was not the really bad news, however.
Management announced that it “is uncomfortable with its ability to remain in compliance” with the terms of its loans, which are tightening each quarter of 2012.
In a conference call with analysts, CFO James Woodward said the company is working with advisers to get out of trouble. It hopes to have a proposal within two weeks to renegotiate the terms of the loans and/or extend their maturity date (currently March 2013).
CEO and President Marshall Morton added that the company would consider possible asset sales — of a newspaper property or a local TV station — as part of a longer term resolution of the debt issue.
They've been spinning off newspapers and TV stations for years. They sacked 165 employees a couple of months ago. They're flagship properties are losing money even though they are in the middle of an election. Now they are working under a deadline to renegotiate their debt within the next two weeks.
Doesn't sound like they're very much longer for this world.