The Future of Print

Reflections of a Newsosaur: High debt plagues many more publishers

Posted in Doom by futureofprint on February 12, 2010

While nine newspaper companies burdened with a collective $16.7 billion in debt have sought refuge to date in Chapter 11, the march to bankruptcy court may not be over for the battered industry.

Beyond the publishers who already have filed or announced plans to file for bankruptcy, seven publicly traded newspaper companies owe far more money than they should at a time they are confronting a deep and almost certainly prolonged collapse in advertising sales.

In a report last week discussing the finances of one of those heavily indebted companies, Fitch Ratings, a private agency that analyzes the quality of bonds for institutional investors, said publishers at this critical point should not have debt greater than one time their annual operating profits.

Read the full story: Reflections of a Newsosaur: High debt plagues many more publishers.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: