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Star Tribune One Step Closer To Bankruptcy…
According to the New York Post, which for some reason has zeroed in on the saga, the Minneapolis Star Tribune has approached its creditors and asked for a 6 month delay in making debt payments. The story reports that the creditors (Credit Suisse being he biggest) are resisting the appeal and are demanding that Avista inject at least $50M into the beleaguered newspaper company before any such relief is granted. Avista’s original $100M investment has already been written down by 75% (and probably should be written down 100%), and I cannot imagine that the firm is too eager to throw more money into the debacle. Either way, the situation is clearly getting more and more grim every day, and my guess is that the paper will be taken over by creditors before the end of the year.
And like the fascination of watching a train wreck in slow motion, a disaster that was already gripping enough to begin with has become even more so now that I get to read the New York Post headlines that are sure to pop up with increasing regularity.