Thursday, January 21, 2010
Do you want the Good News or the Bad?
Good News first - The Transcript, Eagle, Advocate, Banner and Reformer are not cutting back right now.
The Bad News - Their parent company has filed for Chapter 11 Bankruptcy and has turned over 80% of its stock to its creditors who very well might want to squeeze the operations if profits don't materialize:
The Bad News - Their parent company has filed for Chapter 11 Bankruptcy and has turned over 80% of its stock to its creditors who very well might want to squeeze the operations if profits don't materialize:
ffiliated Media Inc. said it has worked out a deal with lenders to restructure its debt and won’t have to slash operations or be forced to sell any of its newspapers.Is it time to assemble a local group of investors who might want to take The Transcript back into private hands? ¶ 9:03 PM
...
In its statement, the company said the deal would reduce debt from $930 million to $165 million and, in exchange, lenders will receive 80 percent of the company’s stock.
However, outright control of the company will continue to remain in the hands of chief executive William Dean Singleton and his partner, company president Joseph J. Lodovic IV, who together own almost all of Affiliated Media’s class A shares, which entitles them to elect a majority of the board of directors.
Comments:
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I've been pondering that for a while.
Maybe run it as a non profit? I don't see how it can work any more for-profit.
Also though... can even work at all as a stand-alone entity? Right now they share a lot of costs (and content) across the papers and STILL can't make it work.
Terrifying all around.
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Maybe run it as a non profit? I don't see how it can work any more for-profit.
Also though... can even work at all as a stand-alone entity? Right now they share a lot of costs (and content) across the papers and STILL can't make it work.
Terrifying all around.
# posted by 
: 2:52 PM
: 2:52 PM<< Home
