Philly newspaper owner latest to file Chapter 11

AP via Yahoo!:



Philly newspaper owner latest to file Chapter 11
Owner of Philadelphia's major daily papers latest to file for bankruptcy protection

Bob Lentz, Associated Press Writer
Monday February 23, 2009, 5:24 am EST


PHILADELPHIA (AP) -- The downward spiral of advertising revenue and circulation, coupled with rising debt, has claimed two more newspaper companies in a two-day span.

The owner of Philadelphia's two major daily papers filed for Chapter 11 bankruptcy protection Sunday in an effort to restructure its increasing debt load. The move comes a day after the Journal Register Co. sought protection.

The filings are the latest blow to a staggering industry. The Chicago-based Tribune Co. sought bankruptcy protection in December, and The Star Tribune of Minneapolis followed suit last month.

On Sunday, Philadelphia Newspapers Inc., the owner of The Philadelphia Inquirer and Philadelphia Daily News filed, citing debts of $390 million.

"This restructuring is focused solely on our debt, not our operations," chief executive officer Brian P. Tierney said in a statement. "Our operations are sound and profitable."

The filing Sunday indicated the company has between $100 million and $500 million in assets and liabilities in the same range. The company said it will continue the normal operations of its newspapers, magazines and online businesses without interruption during the debt-restructuring process. .........(more)

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