Would-Be Saviors Of Philly Papers Need Saving; Philadelphia Media Holdings Files For Chapter 11
This story was written by Staci D. Kramer.
A bad weekend for papers in the Philadelphia area and publishing companies in general ... Saturday, the Journal Register Co (OTCBB: JRCO). filed to reorganize under Chapter 11. Philadelphia Media Holdings, owner of the Philadelphia Inquirer, the Philadelphia Daily News and Philly.com, followed suit Sunday. PMH bought the former Knight Ridder papers from *McClatchy* in 2006 for $562 million$515 million in cash. CEO Brian Tierney, who led the local investment group that planned to show how newspapers could be saved, insisted in the press release (via Philly.com) that the company's operations are "sound and profitable" but that the filing was needed to deal with $390 million in debt.
What this means for the ownership group is unclear. The company is asking the court to approve $25 million in debtor-in-possession financing arranged by Philadelphia-area NewSpring Capital.
By Staci D. Kramer