McClatchy files bankruptcy to shed costs of print legacy and speed shift to digital -

Excerpts from article:

...McClatchy executives fought for months to avoid Thursday's filing; the company pursued multiple regulatory and legislative avenues to address its pension and debt obligations before turning to the bankruptcy process.

...Also, the documents submitted to the U.S. Bankruptcy Court for the Southern District of New York confirm that the Sacramento-based chain twice last year reached agreement on terms in separate strategic transactions "that would have deleveredthe business."

...But in both cases, it said, "McClatchy was unable to come to agreeable terms on financing, leaving the transactions unexecutable." (Industry experts have widely reported that it was Tribune Co., the owner of the Chicago Tribune and other mastheads, that had been in talks about combining with McClatchy.)

...Among them was a debt-for-equity swap that leaves its main bondholders led by Chatham with control of the company, meaning the end of the McClatchy family's control after 163 years.

...The inflection point for McClatchy's bankruptcy was the failure to get pension relief from Congress.

...McClatchy was the proverbial dog that caught the car, buying its larger competitor Knight Ridder in March 2006 for $4.5 billion in cash and stock.

Submitted 112 days ago

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