Is there an end in sight to the parade of newspaper publishers entering Chapter 11? Not anytime soon, it appears.
Columbian Publishing Co., publisher of The Columbian in Vancouver, Wash., filed for bankruptcy protection
on May 1 in the U.S. Bankruptcy Court for the Western District of
Washington in Tacoma. The paper attributed the filing to issues with
lead lender Bank of America Corp. (NYSE:BAC). "Our debt peaked at the same time the
economy stumbled, and the scope of the downturn exceeded my worst
fears," publisher Scott Campbell told The Columbian.
American
Community Newspapers LLC, Sun-Times Media Group Inc., Philadelphia
Newspapers LLC, Journal Register Co., Star Tribune Holdings Corp. and
Tribune Co. all have submitted Chapter 11 petitions since December. And
other big names could join them.
E.W. Scripps Co. (NYSE:SSP) reported
on Monday a $220.8 million loss for the quarter ended March 31,
including a $192 million write-down for the company's television
stations. The publisher of newspapers in 15 markets lost $476.6 million
last year (including a $130.8 million write-down for newspaper
partnerships) and $1.6 million in 2007. Scripps, which closed its Rocky
Mountain News in February after a failed search for a buyer, said
advertising revenue for its newspapers fell 28.6% year-over-year to
$85.8 million, while revenue from its TV stations dropped 20.5%. The
good news for Scripps is that only $1.27 million in principal and
interest is due on its $73.1 million in long-term debt this year.
A.H. Belo Corp. (NYSE:AHC) also released earnings
Monday and reported a flood of red ink -- a net loss of $103.1
million for the first quarter, including $80.9 million in goodwill
impairment at The Providence Journal. A.H. Belo, which also publishes
The Dallas Morning News and The Press-Enterprise of Riverside, Calif.,
said advertising revenue fell 28.2% from the first quarter of 2008,
nearly a carbon copy of the decline at Scripps. The newest loss comes
on top of losses of $62.3 million in 2008 and $347 million in 2007
(including $344.4 million in goodwill impairment). The company did,
however, have only $12.65 million in long-term debt as of March 31.
New York Times Co. ($74.2 million), McClatchy Co. ($37.5 million) and Washington Post Co. ($19.5 million)
all reported net losses recently for their first quarters, and the
Times is threatening to close down the venerable Boston Globe, which it
bought in 1993. Of the larger publishers, only Gannett Co. ($77.7 million) reported net income. - David Elman
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