Date

Wed - 30.07.2014


bankruptcy

The Journal Register Company (JRC), whose extensive portfolio of local and regional U.S. news titles includes the New Haven Register and The Trentonian has filed for Chapter 11 bankruptcy.

Parent company Digital First Media (DFM) confirmed the news on Wednesday and also revealed that it was to sell the company as soon as possible. It is hoped that an auction and sale will be finalised within the next 90 days and 21st CMH Acquisition Company, an affiliate of the Alden Global Capital hedge fund that owns the JRC, has already signed "a stalking horse bid" for the company

Under the direction of DFM’s CEO, John Paton, the Journal Register Company has been steadily making a name for itself as one of the leading innovators of the U.S. news industry. Paton’s firmly held conviction that the future will see print newspapers give way to digital models has seen JRC’s investment in digital ventures rise during his tenure. Since 2009 digital expenses at the company have risen by 151 percent, at a time when general expenditure was greatly reduced.

Author

Amy Hadfield's picture

Amy Hadfield

Date

2012-09-06 18:17

Following the bankruptcy of its publisher Mediapubli, Spanish daily Público has announced that it will put out its final print edition this Sunday. Although the paper's website público.es will continue to operate, Cadena SER estimates that 130 of Público's 160 staff will lose their jobs.

Mediapubli declared bankruptcy at the beginning of January, and was given around a month to come up with enough funds to make Público economically viable. But although majority shareholder Jaume Roures sought investors in Mexico, Venezuela and Ecuador, the company was unable to come up with the necessary sum of around 9 million euros.

The announcement in Público said that the paper's financial difficulties were due to a worsening advertising crisis, profound changes in the newspaper industry and problems with finding new investors.

Author

Hannah Vinter's picture

Hannah Vinter

Date

2012-02-24 18:25

The publisher of the National Enquirer and Men's Fitness announced it will file for bankruptcy in order to restructure, The New York Times reported late yesterday.

New York-based American Media's debt is seven times larger than its equity. It is expected to file for a "prepackaged" 60-day bankruptcy in the next two weeks, CEO David J. Pecker said in a statement.

Image: Sun-Sentinal

Eighty percent of the company's bondholders have agreed to a debt-for-equity exchange, which is necessary for the quick "prepackaged" bankruptcy, the company believes, CNNMoney.com explained.

The move will enable the Enquirer and its related publications "to compete even more aggressively with our peers in the industry," Pecker said, according to The Australian.

Author

Leah McBride Mensching

Date

2010-11-02 17:54

The CEO of Chicago-based media company Tribune Co. will resign this week, sources told the Los Angeles Times. Randy Michaels will be replaced by a four-member office, which will include LA Times Publisher Eddy Hartenstein, President and Publisher of the Chicago Tribune Media Group Tony Hunter, Tribune's chief investment officer Nils Larsen, and chief restructuring officer Don Liebentritt.

News of Michaels' expected resignation came out after the Tribune board met Tuesday night, Variety reported. His resignation was ushered in after questionable behaviour was first reported earlier this month in a scathing article by The New York Times' David Carr, in which Michaels and other executives were accused of creating management and work culture that came to "resemble a frat house."

Image via the Washington Post. Randy Michaels in December 2007, shortly after he was appointed CEO of the Interactive and Broadcasting divisions of Tribune Co.

Author

Leah McBride Mensching

Date

2010-10-21 22:10

paidContent yesterday published this chart (left, click for larger view), which compares how long seven of the top U.S. publishers have spent in bankruptcy, as well as how their basic financial situations differ.

The publishers include MediaNews, Freedom Communications, Sun-Times, Journal Register, Philadelphia Newspapers, Star Tribune and Tribune.

Author

Leah McBride Mensching

Date

2010-10-19 18:40

As mediation talks broke down in the Tribune Co. bankruptcy case this week, the U.S. publisher is also being scrutinised following a report by The New York Times' David Carr on the inappropriate work culture ushered in as executives took their places under Sam Zell in 2008. Tribune management and work culture quickly came to "resemble a frat house, complete with poker parties, juke boxes and pervasive sex talk," Carr writes in the detailed article.

Zell took the company private in 2007 in an US$8.2 billion deal. Under the leadership of Zell and Randy Michaels, a former radio executive who was promoted to chief executive at the company in December 2009, it was initially thought the two would "breathe innovation and reinvention" into the company. Rather, the new leadership definitely changed the work culture, but through questionable management behaviour, sources told Carr.

Image: Wall Street Journal

Author

Savita Sauvin

Date

2010-10-07 23:33

A group the Philadelphia Inquirer's debt holders won today the bankruptcy court auction for the Philadelphia Media Holdings, the company that owns the Inquirer and the Philadelphia Daily News, Reuters informed.

The lenders, which include hedge fund Angelo, Gordon & Co and the Credit Suisse, submitted on Wednesday the winning offer of US$105 million, outbidding the $85 million proposed by philanthropist Raymond Perelman, Bloomberg revealed. The judge's confirmation hearing is schedule for next Thursday.

Photo source: Philadelphia Independent Media Center

This is the second time that the creditors win the auction, The New York Times reminded. In April, the newspapers were sold to the creditors for $139 million. However, the deal was nullified after they failed to negotiate cutbacks with one of the sixteen newspaper unions.

According to the Philadelphia Inquirer, the company filed for bankruptcy in February 2009, "owning senior creditors $318 million that it could not refinance."

Author

Clara Mart

Date

2010-09-24 01:02

Tribune Co.'s board of directors has formed a special committee with four independent board members to oversee its Chapter 11 plan as lenders withdrew from supporting a restructuring plan, Bloomberg reported.

Lawyers for the publisher told a Delaware bankruptcy judge weeks ago that JPMorgan Chase and distressed-debt specialist Angelo, Gordon & Co. had dropped out a settlement agreement, which would have left them among the company's new owners, Philly.com reported.

The four board members include Board Chairman Mark Shapiro, Jeffrey S. Berg, Maggie Wilderotter and Frank Wood, according to the Associated Press article posted on Google News.

Based on a court filing Tuesday, the committee will review and approve a bankruptcy plan and resolve legal claims against Tribune, including claims stemming from its leverage buyout.

Author

Erina Lin

Date

2010-09-01 19:13

An examiner appointed by the U.S. Bankruptcy Court has said the Tribune Co.'s 2007 US$8.2 billion buyout was "marred" by the "dishonesty and lack of candor" of senior managers at the time, the Chicago Tribune reported today.

In fact, the deal left it "too shaky to survive," after the company couldn't handle the massive debt load when the economy began crumbling, a Wall Street Journal article stated. The WSJ cites investigator Kenneth Klee's statement that it is "highly unlikely" the U.S. publisher was "rendered insolvent and without adequate capital" as a result of the deal, led by real estate mogul Sam Zell.

In a 700-page report filed with the bankruptcy court in Delaware, Klee concluded that the second part of the buyout is an example of "fraudulent conveyance," because the debt in the second half of the deal was so huge that it left the company unable to even pay its bills, the Tribune explained.

Despite the report's gloomy conclusions, the Tribune Co., which publishes flagship Chicago Tribune and the Los Angeles Times, among others, still expects to emerge from bankruptcy protection this year, The Associated Press reported late Tuesday afternoon.

Author

Leah McBride Mensching

Date

2010-07-28 00:54

Brown Publishing Co., the Ohio-based newspaper chain which filed for bankruptcy in May, has received two qualifying bids, including a $22.4 million one from company insiders, Business Week reported.

Roy Brown, the current president and CEO of the newly formed Brown Media Corp., made the bid during an auction that ended Tuesday.

However, U.S. Bankruptcy Court Judge Dorothy Eisenberg postponed the hearing a week to review all paperwork. The bidders will have to wait a week to learn if the sale will be approved, The Associated Press reported.

Author

Erina Lin

Date

2010-07-23 22:54

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