The McClatchy Company operates as a newspaper company in the United States. Its newspapers include The Miami Herald, The Sacramento Bee, the Fort Worth Star-Telegram, The Kansas City Star, The Charlotte Observer, and The (Raleigh) News & Observer. As of December 31, 2007, the company owned 30 daily newspapers and approximately 50 non dailies located in 29 markets. In addition, it has a network of Internet assets, including local Web sites in each of its daily newspaper markets offering users information, news, advertising, e-commerce, and other services. The company also owns and operates M...
McClatchy (NYSE: MNI) is the third largest newspaper chain in the U.S. It is also in debt up to its eyeballs from its purchase of Knight-Ridder. Its only chance of paying that debt is to get operating income up. Because of the bad advertising environment, that has not worked out.
Things have gotten so bad that McClatchy may default on its debt and creditors may end up owning and operating the company. Investment bankers running printing presses -- nice picture.
Many of the large newspaper chain purchases over the last several years have involved tremendous borrowing and the banks are at the door with eviction notices. Even the big companies in the industry are having trouble. According toThe Wall Street Journal, Gannett, Inc. (NYSE:GCI) the country's largest newspaper publisher, said Wednesday it had tapped its credit line as short-term financing markets stall.
Several other chains, particularly McClatchy (NYSE:MNI) and Gatehouse (NYSE:GHS) are having crippling debt problems.
Many of the large newspaper chain purchases over the last several years have involved tremendous borrowing and the banks are at the door with eviction notices. Even the big companies in the industry are having trouble. According toThe Wall Street Journal, Gannett, Inc. (NYSE:GCI) the country's largest newspaper publisher, said Wednesday it had tapped its credit line as short-term financing markets stall.
Several other chains, particularly McClatchy (NYSE:MNI) and Gatehouse (NYSE:GHS) are having crippling debt problems.
Within the past years, several public newspaper companies have been pushed to the cliff of insolvency. They have taken on too much debt and the downturn in advertising has put them in a position where they cannot cover interest payments.
Journal Register was knocked off The New York Stock Exchange and is in the process of liquidation. The value of its properties has dropped so low that its common shareholders will get nothing and creditors will not recover the amount of their loans. Gatehouse Media (NYSE: GHS) has traded under $1 for weeks a
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About The McClatchy Company
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Within the past years, several public newspaper companies have been pushed to the cliff of insolvency. They have taken on too much debt and the downturn in advertising has put them in a position where they cannot cover interest payments.
