Date

Fri - 18.04.2014


debt

In order to cut its debt, Slovenian beverage firm Pivovarna Lasko has decided to sell its publishing arm, Delo d.d., which owns two of the most popular newspapers in the country, BusinessWeek reported.

Last Tuesday, the company put ads in The Financial Times as well as Delo, its flagship publication, saying it would receive non-binding bids until December 14, Bloomberg pointed out. The sale is expected to take place next year.

Pivovarna Lasko announced the sale in October as part of "its strategic plan to withdraw from the media sector and focus on its core business, which is the production and sale of beverages," explained the Public Agency of the Republic of Slovenia for Entrepreneurship and Foreign Investments.

The publishing company, which was bought in 2007 for $117 million, also owns tabloid Slovenske Novice, magazine Nedelo and a cultural biweekly called Pogledi, BusinessWeek reminded.

Author

Clara Mart

Date

2010-12-06 19:04

The Washington Times was sold yesterday for just US$1 to a group led by the Rev. Sun Myung Moon, leader of the Unification Church and founder of the newspaper, The Associated Press revealed.

The new owners agreed to assume the newspaper's debt and restore the sports section, which was eliminated earlier this year to cut costs, The Washington Post noted. According to an article published in the Washington Times, the organisation "will likely expand into radio and will broaden its presence on the Web."

After being run since 2006 by Moon's oldest son, Preston Moon, the newspaper will be overseen by a five-member board, which includes former president and publisher Thomas McDevitt, chairman Douglas M. Joo and finance chief Keith Cooperrider, Bloomberg explained. All three of them had been fired by the previous owner.

Author

Clara Mart

Date

2010-11-03 18:30

The New York Times Co. will pay back a US$250 million loan from Mexican billionaire Carlos Slim three years ahead of schedule, Bloomberg reported Sunday.

In an interview with The Sunday Telegraph, New York Times CEO Janet Robinson said the company is focused "on bringing debt down as quickly as we can," citing as a priority the repayment of the Slim's loan. "We have the option to pay that down in early 2012...We have every intention of paying it all by then," she said.

Photo source: Associated Press via The Huffington Post

Once debt levels decline, The New York Times Co. will consider acquisitions "in the digital space," Robison said.

The publishing company borrowed the money in January of 2009 to refinance its 1.1 billion debt. Since then, it has reduced it to $670 million, Editor & Publisher reported. With this repayment, the group will save $100 millions.

Author

Clara Mart

Date

2010-10-04 07:19

A group of Dominican investors have bought the 121-year-old Listin Diario and its radio stations, The Associated Press revealed yesterday.

Although the value of the Aug. 10 transaction was not disclosed, the president of the Central Bank, Héctor Valdez Albizu, said the operation had covered the $51.8 million debt that the media company had with the government, ElMasacre.com reported. The group of investors include media mogul José Luis Corripio and Juan Bautista Vicini Lluberes, whose family owns the sugar giant Vicini Group, ABC.es reminded.

The Central Bank seized the Editora Listí­n Diario in 2003 after its owner Ramón Báez Figeoroa, who at the time was also the head of the Dominican Republic's second largest bank, was accused of fraud. The government negotiated the newspaper's sale for more than a year.

In a statement published in the newspaper, the new shareholders said they remained committed "to preserve and be faithful to the historical legacy of Listin Diario."

The daily, which was founded in 1889, has an average circulation of 60,000 copies.

Author

Clara Mart

Date

2010-08-31 18:10

Independent News and Media is withdrawing from India's newspaper market after selling its remaining 5.7 percent stake in Jagran Prakashan Limited, owner of the Dainik Jagran daily, for €32m (£26.5m), Media Week reported yesterday.

The Ireland-based publisher, which bought 26 percent of the shares in 2005 for €28.5 million, will use the money to pay off its bank loans, The Irish Times informed. The company started selling its stake a year ago and, overall, has received €96m (£79.6m).

"While we have been crystal clear that our immediate and continuing priorities are on reducing bank debt... and focusing on growing our market-leading brands in our core markets, it is fitting to recognize that our five year investment in JPL has been a highly profitable one for INM," Chief Executive Gavin O'Reilly said, the Press Gazette quoted. (Note: O'Reilly is also President of WAN-IFRA, of which this blog is part).

He also noted that Independent News and Media was the first "international media group to invest in the burgeoning Indian newspaper market in 2005," according to The Guardian.

Author

Clara Mart

Date

2010-08-05 23:00

Prominent French outlet Le Monde needs €125 million to get out of its debt condition, according to Electron Libre. The group must return €70 million in redeemable bonds, insure €30 million of its working capital and cover its €25 deficit. Le Nouvel Observateur suggested that Le Monde might "disappear" unless a solution is found by June 2010.

Le Monde will be finalising its plan for recapitalization in the upcoming weeks before passing it through the shareholders, AFP reported April 9. The daily's supervisory board said that a major Spanish publishing firm, Grupo Prisa, would be embarking on a capital venture with Monde Imprimerie to bring about "modernization." According to 20 Minutes, the group's board of Journalists, which currently owns the majority of Le Monde, may lose control of the capital.

Author

Alisa Zykova

Date

2010-04-19 19:15

Tribune Co. Chairman Sam Zell told CNBC today that he expects the U.S. publishing company to exit bankruptcy in the first half of this year, the Chicago Tribune reported.

"I think that an awful lot of the steps that the management of this company has taken to change the model, to reduce costs, to make the operations more efficient have all been coming through. So I'm very optimistic about the future of the company," he said in the interview.

Zell bought the Tribune Co., which publishes the Chicago Tribune and Los Angeles Times, in 2007. Due to a huge debt load taken on when Zell took the company private, Tribune filed for bankruptcy in December 2008.

Author

Leah McBride Mensching

Date

2010-01-14 00:21

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.

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.

Author

Leah McBride Mensching

Date

2009-11-30 16:12

Independent News & Media confirmed on Wednesday that it will grant its bondholders a large chunk of equity in a move to secure the company's financial well being, Reuters reported today.

The company will use the debt-for-equity swap to relieve the strain of its overdue €200 million senior debt, providing bondholders with a substantial stake in the company.

Independent News said it would also hold a rights issue at a price of 5 cents a shares, an 84 percent discount to its current price, giving existing shareholders the opportunity to participate in the capital restructuring. According to IN&M, the debt-for-equity deal and the rights issue combined with previously revealed asset sales, should reduce debt by around €350 million.

Author

Leah McBride Mensching

Date

2009-09-23 20:40

Philadelphia Newspapers has filed a complaint against Review Publishing as part of its bankruptcy filing for unpaid debt of US$530,000 for printing services, The Bulletin reported Sunday.

A 2003 agreement has seen that Philadelphia Newspapers print and distribute Review Publishing papers the Philadelphia Weekly, South Philly Review, Southwest Philly Review, and Atlantic City Weekly. However, according to the claim, the company has not been paid since the agreement was renewed in May.

The company says it is owed $48,759 for March, $190,516 for May, $201,671 for June, and $89,981 for July, plus interest for sums unpaid after more than 60 days.

"Philadelphia Newspapers has made demands upon Review for payment but Review refused and (continues) to refuse to make payment," the complaint states.

As Philadelphia Newspaper's bankruptcy proceeding continued last week, the company received relief in the form of an agreement with its creditors for a $15 million loan to keep its newspapers operating.

Author

Leah McBride Mensching

Date

2009-09-07 15:20

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