When is the Minneapolis Star Tribune planning to emerge from bankruptcy?
The Minneapolis Star-Tribune, which filed for bankruptcy in January, expects to exit from Chapter 11 by the fall, the paper reported (via Reuters). Creditors who hold about $384 million of the Star-Trib’s secured debt, as well as $96 million in unsecured obligations, have approved the publisher’s plan. Under the Star-Trib’s proposal, the company would come out of Chapter 11 with $100 million in debt and would be worth $118-$144 million, which includes the value of its real estate. In addition, current publisher and chairman Chris Harte, whose family is one of the owners of the paper, will leave the company before it completes the bankruptcy process. More after the jump The Star-Trib filed for bankruptcy after missing several debt payments over the past year.The paper was bought a little over two years ago from The McClatchy Company (NYSE: MNI) by Avista Capital Partners for $530 million. As a result of the company’s reorg plan, the report noted that Avista Capital, which is still a maj
The Star Tribune, saddled with high debt and a sharp decline in print advertising, filed a Chapter 11 bankruptcy petition.Minnesota’s largest newspaper will try to use bankruptcy to restructure its debt and lower its labor costs. The filing, which was made with the U.S. Bankruptcy Court in the southern district of New York, had been expected for months. It follows several missed payments to the paper’s lenders, and it comes less than two years after a private equity group, New York-based Avista Capital Partners, bought the paper for $530 million.In its filing, the newspaper listed assets of $493.2 million and liabilities of $661.1 million.Like most newspapers, the Star Tribune has experienced a sharp decline in print advertising. Its earnings before interest, taxes and debt payments were about $26 million in 2008, down from about $59 million in 2007 and $115 million in 2004.Facing sharp revenue declines, the newspaper seeks bankruptcy protection, hoping to cut costs and restructure deb
Minneapolis Star Tribune plans Chapter 11 exit Reuters – Ajay Kamalakaran, Dan Lalor – Jun 19, 2009 (Reuters) – The Minneapolis Star Tribune said it had filed a plan to emerge from Chapter 11 bankruptcy by autumn, in a report on its website. Sources: http://www.reuters.
