In bankruptcy, newspaper lenders become publishers
Posted by Lisette García on November 30, 2009 at 8:12 AM
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.
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.
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.
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