Date

Fri - 17.11.2017


bankruptcy

Star Tribune Holdings Corp., publisher of the Minneapolis Star Tribune, has applied for a 90-day extension of its control over its bankruptcy proceedings, the Wall Street Journal reported today.

The application was filed with the U.S. Bankruptcy Court in New York on Monday, and requests that the company retain independent control over its bankruptcy case until August 13, an extension from the original May 15 date. Without the judicial grant of an extension creditors and other parties may offer alternative approaches to the publisher's reorganisation of its debt.

The Star Tribune said the request would allow the publisher "to avoid the necessity of having to finalise a plan of reorganisation prematurely and to ensure that their plan of reorganisation best addresses the interests of the (company), their employees, creditors and estates," company lawyers said in court papers.

Reasons behind the the extension application were the "large and complex" character of the proceedings and the company's desire to reach unanimous agreement with its creditors.

The newspaper publisher filed for Chapter 11 bankruptcy protection on January 15 after failed negotiations with the company's labour unions in an attempt to get $20 million in wage and benefit concessions. Of the Star Tribune's 1,597 staff, around are represented by unions, which include the Newspaper Guild and the International Brotherhood of Teamsters.

The extension hearing is set for May 6.

Author

Leah McBride Mensching

Date

2009-04-22 18:39

Under pressure from heavy debt, News-Journal Corp. recently hired a bankruptcy lawyer the news-journalonline.com reported Friday. Bruce A. Hanna, the company's attorney, said filing Chapter 11 "could potentially allow The News-Journal to continue operating, thereby saving several hundred jobs."

The strategy could help The News-Journal cut ties with Cox Enterprises, which owns 47.5 percent of the company, through debt reorganisation and lowering payments for Cox shares.

The decision to pursue the possibility of filing for bankruptcy was decided on when both the News-Journal and Cox were seeking ways to end their joint sales agreement. Should the News-Journal file Chapter 11, the companies would be required to have all major restructuring decisions approved by a bankruptcy court, news-journalonline.com reported.

The News-Journal and Cox have been in litigation since 2004, when Cox sued the News-Journal over a US$13 million investment that they weren't notified of. Since then, the company has been trying to sell the newspaper, but with no luck.

An attorney involved in the case commented, "there hardly seems a worse time to sell a newspaper than now."

News-Journal Corp. has already eliminated 186 jobs, as well as closed several offices in order to cut costs.

Author

Leah McBride Mensching

Date

2009-04-17 12:32

Newsprint company AbitibiBowater Inc.is seeking bankruptcy protection in light of its US$8.78 billion debt, Bloomberg reported Friday.

The company, based in Canada, filed in a U.S. Bankruptcy Court this week and plans to do similarly in Canada without delay. AbitibiBowater's Chief Executive Officer David Paterson said the decision to file was reached after "all other viable options to recapitalize our long-term debt were exhausted."

The newsprint company had struggled against the drop in demand for paper in the North American market, as more newspapers move to online formats. Attempts to restructure its debt have proved unsuccessful, as creditors failed to come to the company's aid and refinancing plans are not able to counter the amount of money owed, Bloomberg reported.

The bankruptcy filing, which comes amid a 33 percent decline in demand for paper, a 27-year high for the industry, also threatens the survival of pulp and paper mills.

"It's to early to know which mills will come out the other side of the bankruptcy process," Paul Quinn, a paper and forest products analyst, told Bloomberg.

Author

Leah McBride Mensching

Date

2009-04-17 12:01

The owners of The Philadelphia Inquirer and Philadelphia Daily News have been granted permission to hire investment firm Sonenshine Partners LLC, The Associated Press reported.

Lenders agreed to let the newspaper publisher hire the firm at $75,000 a month after debating whether the groups efforts would overlap those of Alvarez and Marsal, another firm already working for the company.

The newspaper company filed chapter 11 in February, claiming $395 million in debt. The papers' projected income is expected to drop by $15 million this year.

Author

Leah McBride Mensching

Date

2009-04-14 10:46

Minneapolis Star Tribune staff members have taken the initiative to prevent the newspaper's closure, KARE 11 reported. Monday marks the beginning of an employee effort, appealing to readers to help rescue the newspaper.

Staff are seeking the advice and support of readers to adopt a successful model with the message: "It's your paper and we need your help to save it." The paper has already opened a new Web site and Facebook page and an online site for subscription purchase.

The newspaper's staff targeted Minnesota Twins baseball fans at Monday's home opener, handing out paper hats and scorecards, in an attempt to reach out to the local community and create interest in the paper and Web site, KARE 11 reported.

Since the Star Tribune filed for bankruptcy in January, hundreds of staff have lost their jobs.

Author

Leah McBride Mensching

Date

2009-04-07 14:56

Since the end of last year, five major U.S. newspapers have filed for bankruptcy protection, The Associated Press reported.

and the Spanish language free daily Hoy in Chicago, whose sister edition in Los Angeles has just become a weekly. Tribune Co. has an accumulate debt of US$13 billion and had $7.6 billion in assets when it filed chapter 11.


Star Tribune Holdings Corp. also filed for protection at the beginning of the year, partly due to the large amounts of debt accrued from the 2007 acquisition from McClatchy. The Holdings Corp. owns the Star Tribune of Minneapolis.

In February, the Journal Register Co. filed for protection. Journal Register owns several dailies in Connecticut, Pennsylvania, New Jersey, Michigan, and New York. The company counts $692 million in debt and has sold two of its Connecticut dailies and closed a number of weeklies.

Author

Leah McBride Mensching

Date

2009-04-01 11:42

Sun-Times Media Group Inc. today filed for Chapter 11 bankruptcy protection in order to "reestablish itself as a self-sustaining, profitable operation. That is worth fighting for, said Chairman Jeremy Halbreich, the Chicago Sun-Times reported.

The news group, which owns the Chicago paper and other suburban dailies and weeklies, filed for bankruptcy "with the aim of reorganising operations, setting a tax liability and making the company fit for a buyer," the Sun-Times article stated. The company owes the U.S. Internal Revenue Service US$608 million in taxes and penalties incurred by former owner Conrad Black, currently in prison for corporate theft. However, the STMG does not have bank debt.

Halbreich told the Sun-Times he aims to keep "as many jobs as possible," while protecting the company's news operations, in both print and online.

The entire STMG company is worth about $4 million, based on its stock, and as of Nov. 7, the company's assets totalled $479 million, and liabilities were at $801 million, according to the bankruptcy documents.

Author

Leah McBride Mensching

Date

2009-03-31 17:27

Newsprint firm AbitibiBowater is making efforts to avoid bankruptcy due to the falling price of newsprint, reports The New York Times. A failure to reach an agreement with the company's bondholders could result in the company having to file for bankruptcy protection.

In 2008, newsprint consumption dropped by an average of 14 percent, with daily newspapers seeing a 16 percent decline in readership. The decrease in demand has left AbitibiBowater in a difficult position regarding its substantial debt - most of which was accrued when Abitibi Consolidated, of Montreal, and Bowater, of Greenville, South Carolina, merged in 2007.

Last month, the company proposed two bond-exchange offers that would trim its debt by US$2.4 billion. The offers would require current holders of approximately $250 million in AbitibiBowater bonds to invest additional capital in order to gain new, secured debt in the company. Deadlines for these offers have been extended twice.

A source said several investors, including Steelhead Partners, have consented to providing the company with hundreds of millions of dollars to aid restructuring efforts.

Negotiations with investors such as Citigroup, which hold about $40 million of bonds due in 2009, continue to deal with issues of protection and participation in the newsprint company's plans to steer clear of filing for bankruptcy.

Author

Leah McBride Mensching

Date

2009-03-23 13:46

In an attempt to lower costs, the Star Tribune on Wednesday sought court permission to renege on one of its labour contracts, reports The Associated Press.

On Wednesday the newspaper requested that Judge Robert Drain cancel the contract after failed negotiations with the pressmen union. The paper said it needed US$3.5 million in wage concessions from the pressmen union as part of $20 million in cuts across the newspaper's 10 labour unions.

"We're at a critical stage," Chief Financial Officer David Montgomery said, according to the AP. "We need to save every dollar we can possibly save to get us through this period and get us to the other side of the recession."

As of December, the newspaper owes $667 million and has $492 million in assets and $27 million in cash. The Star Tribune sought Chapter 11 bankruptcy protection In January while it tries to reorganise its debt in an attempt to keep the paper open. The newspaper is carrying heavy debt from its purchase of Avista Capital Partners LP, from McClatchy Co. in March 2007.

The cancellation of the contract would affect 116 union employees.

As of December, the newspaper owes $667 million and has $492 million in assets and $27 million in cash. Judge Drain did not state when a decision would be reached, the AP reported.

Author

Leah McBride Mensching

Date

2009-03-12 15:31

Philadelphia Newspapers Inc., parent company of The Philadelphia Inquirer and The Philadelphia Daily News, filed for bankruptcy protection on Sunday in order to restructure US$390 million debt, the Inquirer reported Monday.

The move marks a dramatic attempt to further counter declines in advertising revenue and circulation. The Philadelphia Inquirer had a reported weekday circulation decline of 11 percent and Sunday decline of 14 percent in 2008.

Philadelphia Newspapers' debt stands at $390 million, according to the Inquirer. The company chose to pursue bankruptcy proceedings after 11 months of negotiation with its lenders, during which it incurred $13.4 million in penalty interest and fees.

The company stressed the continued operation of its publications and online business during the debt restructuring. Chief Executive Officer Brian P. Tierney said the "restructuring is focused solely on our debt, not our operations. Our operations are sound and profitable," the Inquirer reported.

The two newspapers were bought in June 2006 by a group of Philadelphia investors lead by Tierney.

Author

Leah McBride Mensching

Date

2009-02-23 23:54

Syndicate content

© 2015 WAN-IFRA - World Association of Newspapers and News Publishers

Footer Navigation