Star Tribune bankruptcy will take more than a year to resolve


The Strib's bankruptcy will take anywhere from a year to a year and a half to work out. That's according to a bankruptcy lawyer interviewed by the Strib for today's paper:

Bankruptcy attorneys estimate that process could take 12 to 18 months, with the duration depending on whether the company is able to negotiate new pay scales or ask a judge to impose them.

"Within a year you'll probably have most of the critical issues worked out," said Mark Kalla, a bankruptcy attorney for Dorsey & Whitney. "Bankruptcy judges usually are pretty efficient in moving things along. And there's a price to be paid for staying in bankruptcy too long."

The bankruptcy filings revealed, for instance, that the Star Tribune paid its New York legal counsel, Davis Polk & Wardwell, a $350,000 retainer, and it's paying Blackstone Advisory Services $150,000 a month for restructuring advice.

$150,000/month x 12 months = A lot of newsroom salaries.