NY Post: Blackstone Group to Strib's Rescue?


The writer at the newspaper who started the Star Tribune bankruptcy rumor has a followup article in today's edition.

Although the update first seems to back off the bankruptcy claim, implying that the Blackstone Group is here to save the day, by the end of the story we're back in Chapter 11.

Most intriguing is this bit of inside gossip at the end:

Sources close to the situation said yesterday that Blackstone's options for restructuring the Strib's balance sheet are limited and include finding a group of investors to inject additional cash into the company in exchange for some of Avista's equity, or having the private-equity firm invest more.

"The company may be able to pay its debts this week, but if they cannot find additional capital, there is no way they can avoid bankruptcy," said a source familiar with the situation.