Date

Fri - 17.11.2017


bankruptcy

While politics make strange bedfellows, finances make even stranger ones.

The Associated Press reported today that four of the United States's largest metropolitan dailies - the Los Angeles Times, Chicago Tribune, the Star Tribune in Minneapolis and The Philadelphia Inquirer - are set to continue operations under new management due to their inability to service crushing debt.

The bizarre part is that the would-be managers - their lenders - have each experienced financial troubles of their own recently.

It remains to be seen if bankers such as JP Morgan Chase & Co. and bankruptcy-specialty firms such as Angelo, Gordon & Co. can do for publishing what they could not do for the financial services industry - namely, prevent utter economic meltdown within the industry.

Some analysts are plenty optimistic, though, seeing the default takeover as an opportunity to inject fresh blood into the ailing system which traditional media has become.

Author

Leah McBride Mensching

Date

2009-11-30 15:12

A colorable offer has come forward for a Pulitzer prize-winning newspaper which its bankrupt publisher had planned to shutter at year's end, The Portales News-Tribune Friday reported.

The East Valley Tribune's publisher, Freedom Communications Inc., has operated in receivership since filing for bankruptcy protection. Thus, it must obtain judicial approval for any sale of assets to occur. Judicial approval will likely chiefly entail review of the priority of distribution of any proceeds obtained.

The identity of the buyer was not revealed nor was the agreed-upon purchase price disclosed. The East Valley Tribune is based in Mesa, Arizona in the southwestern part of the United States.

Author

Leah McBride Mensching

Date

2009-11-23 16:01

The road which lies ahead for the Bhutan Times just got tougher.

Three weeks ago, the country's only publicly-traded publisher changed hands as it faced a loss of Nu 5.39 million (US$115,790) South Asia Media reported Saturday. Then, along with new chairman and CEO Wancha Sangey, the newspaper secured written pledges from all employees to do their best to help bring the newspaper back from the economic brink. Now, half of those same employees abandoned ship Friday, citing irreconcilable differences over how much editorial control management should reasonably be permitted to exert for the sake of commerce.

Sangey views the dispute as centering instead on issues of defamation and a plot to bankrupt the company. "Since I joined, I made one request to them that, while freedom of speech is very important, we shouldn't forget that we're Bhutanese and that you can slur a ministry if it's wrong but not Bhutan as a nation."

Seven former journalists signed a rebuttal to Sangey's charges in a letter to the editor published by Bhutan Today. Concurrently, Bhutan Today's managing director, Tenzin Dorji, denounced the resignations as immoral, adding that he had no intention of hiring them to his sole proprietor publication.

Author

Leah McBride Mensching

Date

2009-10-27 15:05

The U.S. Justice Department has dropped its investigation into a newspaper merger slated for publications throughout Northwest Arkansas, the Fayeteville Flyer reported today.

The conclusion of the antitrust allegation signals that Wehco Media and Stephens Media LLC will join as scheduled on November 1, according to The Morning News. Whole Hog Sports reported today that the go-ahead came in the absence of an outside buyer for Stephens' flagship publication, The Morning News.

The 50-50 partnership will publish the Democrat-Gazette; The Morning News; the Northwest Arkansas Times; the Benton County Daily Record; weekly newspapers in several counties; and a sports magazine, Hawgs Illustrated, the Democract-Gazette reported today.

Author

Leah McBride Mensching

Date

2009-10-27 13:20

Defying earlier denials, media conglomerate Canwest is preparing to liquidate its newspaper assets, even as it expands its television presence. Within a month it will be delisted from the Toronto Stock Exchange.

Through a partnership with U.S.-based Scripps Interactive, Canwest on Monday launches Do-It-Yourself Network, featuring shows such as Sweat Equity and Kitchen Impossible, the company announced today. Meanwhile, as part of its bankruptcy process, Canwest is bringing its newspaper holdings back into the fold in order to shield those assets from creditors as well, CBC News reported following Canwest's announcement.

Author

Leah McBride Mensching

Date

2009-10-16 21:36

After selling down its stake in Australian broadcaster Network Ten, debt-laden Canwest Global Communications Corp. (CGS-T 0.23-0.04-14.81%) has turned to unloading its Canadian newspaper division, Editor & Publisher reported Monday. Canwest on Friday denied the story.

According to the Globe and Mail, National Post CEO Paul Godfrey had lined up financial support for the purchase as Canwest's bankruptcy reorganisation proceeds.

Meanwhile, Canwest newspapers say they today enjoy larger individual market holds than any other newspapers in North America. Canwest is Canada's largest publisher of paid English-language daily newpapers that include the National Post and ten major-market dailies.

Author

Leah McBride Mensching

Date

2009-10-05 17:00

Three newspaper companies have come out of Chapter 11 bankruptcy protection: American Community Newspapers LLC, Journal Register Co. and Star Tribune Holdings Corp., The Associated Press reported Monday.

American Community Newspapers first filed for Chapter 11 protection in April because it was running out of cash "without any prospect of obtaining additional funding." The company was sold to senior creditors after judge approval in June, clearing most of the group's debt. The company publishes three daily newspapers.

The Journal Register Co., which publishes 22 daily papers and more than 300 weeklies, sought bankruptcy protection in August with $692 million worth of debt. This was cut to $225 million in exchange for creditor ownership.

Star Tribune Holding Corp. was forced to seek Chapter 11 protection in January with a $480 million debt load. The company's reorganisation plan, approved on Monday, saw debt reduced to $100 million as the senior lenders, led by investment group Angelo, Gordon & Co., become the new owners of the company. The company will now be called Star Tribune Media Co. with 95 percent of its stock owned by its senior secured creditors and Michael Sweeny, the newly appointed chairman, the Minneapolis Business Journal reported Monday.

Author

Leah McBride Mensching

Date

2009-09-29 13:39

The Reader's Digest Association, whose U.S. arm sought bankruptcy protection last month, is looking to overhaul its global online activities to attract a younger audience, the Financial Times reported Monday.

"As a publishing company, there's an inherent expectation that the Web site should be a companion to the magazine," Online Manager Jonathan Hills told Audience Marketplace Development in July. "We've pushed the idea that in order to grow we need to create our own identity online. That doesn't mean we have to be a completely different entity but we need some freedom to not replicate the magazine on the Web. That's never going to produce any kind of growth for us or anyone else."

Since Hills joined readersdigest.com in January, the site has posted record-breaking traffic and revenue. Unique visitors were up 82 percent to 2.5 million and total page views climbed 102 percent to 12 million versus last year. Digital advertising revenues are up by over 60 percent with more than 40 new advertisers, which include brands such as Proctor & Gamble, Campbell's, Unilever and Frito Lay.

Author

Leah McBride Mensching

Date

2009-09-21 23:14

On Thursday a federal bankruptcy court authorised the Star Tribune of Minneapolis to return from its bankruptcy protection by the end of the month, under a reorganisation agreement that sees the newspaper's key creditors take over ownership of the newspaper, The Associated Press reported Friday.

Bankruptcy Judge Robert D. Drain approved the exit from Chapter 11 protection despite protests from low-level creditors about the anonymity of the newspaper's new publisher. The unsecured creditors complained that the approval could not be given without knowing who would take over the newspaper's key position.

The group set to take over the Tribune said it had put together a committee to run the newspaper but said it could not name its candidate for publisher, as the person is yet to sign a contract and still works for another company.

However, the publisher is expected to be revealed in the next few days, according to the newspaper's bankruptcy attorney at Davis Polk & Wardwell, who said the steering committee is still negotiating with candidate, the Star Tribune reported on its Web site Thursday. The proposed date for the Tribune exit from bankruptcy is September 28, just in time for its next financial reporting period.

Author

Leah McBride Mensching

Date

2009-09-18 20:40

U.S. federal media ownership rules are making it difficult for lenders on Wall Street that have suddenly found themselves owners of newspaper, TV and radio companies after media firms go broke, the Wall Street Journal reported today. Restructuring talks have hit speed bumps, as lenders on Wall Street, never having anticipated such dire economic circumstances to have hit all media, are caught off guard by the rules.

The Federal Communications Commission's rules, created to cap concentrated ownership of media companies by regulating media sales, state that foreign ownership of a U.S. broadcaster is limited to 20 percent, or 25 percent if that ownership is through a holding company. Media cross-ownership is also limited, but it is allowed "under certain circumstances," according to the WSJ.

For example, the WSJ notes, J.P. Morgan may find itself a shareholder in both newspaper publisher Tribune Co. and an owner in media group Freedom Communications Inc., after it has already become the owner of Journal Register Co. due to Chapter 11 bankruptcy by its former owner. All three companies exist in markets that Citadel also has a presence in, including Los Angeles and Chicago.

Author

Leah McBride Mensching

Date

2009-09-18 17:28

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