Strib Bankruptcy Watch: Avista asks for six month debt holiday
In a sign of how dire the financial situation is at the Star Tribune, the struggling newspaper is asking its creditors for a six-month vacation from paying its debts, according to the New York Post.
There's been a relative period of calm since word broke in early May that the Strib was deep in debt and had to bring in a third-party to help restructure its finances. But this latest piece of news once again reminds us that all is not well at 425 Portland Ave.
According to the Post:
The beleaguered Minneapolis Star Tribune has asked creditors to delay its debt payments for six months while it cuts costs and tries to rescue its ailing balance sheet.
But "The Strib," as it is known locally, is meeting resistance from creditors that want the owners to inject $50 million of new equity into the company before granting any concessions, sources said.
It looks like the Strib isn't going to be able to cut its way out of trouble:
The firm also said the outlook in the near and medium term remained challenging and "cost savings alone will not fix the current financial underperformance."
Chris Harte and the other powers that be at Avisa weren't willing to comment, which I'd say is ironic for people in the newspaper business, but it's becoming increasingly clear that these guys don't want to be in the newspaper business.
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