Tuesday, November 19, 2019
SHOCK!!! KANSAS CITY STAR PARENT COMPANY McCLATCHY STARES DOWN BANKRUPTCY AFTER STOCK CRASH!!!
Anybody wanna help TKC buy a newspaper??? I'm searching through my pants for a few nickles to make a purchase . . . Haven't found much yet but there's A LOT of room in there . . . Meanwhile, bankruptcy could give lenders some control over newspapers just in time for the election cycle.
Meanwhile, don't overestimate the "opportunity" here . . . Rich people are rich because they don't invest in dying businesses.
Here's the news tease excerpt with a special thanks to KICK-ASS TKC READERS who keep our community up to date on this ongoing hot mess that all of the other local MSM outlets are politely ignoring . . .
The McClatchy Co. . . . could file for bankruptcy within the next year, according to analysts.
The company faces a mandatory $124 million contribution to its pension plan in 2020.
“If they can’t offload the pensions or get pension plan relief, they’ll have to file for bankruptcy,” said media analyst Craig Huber, founder of Huber Research Partners LLC, who has followed the company since 1995. In an interview, Huber estimated McClatchy would have free cash flow of less than $20 million next year, a fraction of what it needs to cover its pension obligations.
A representative for the company declined to comment. In its third-quarter earnings release last week, McClatchy said the pension contribution created “a significant liquidity challenge in 2020.” It also warned in regulatory documents that it may not be able to continue as a going concern.
Bloomberg: Newspaper Publisher McClatchy Teeters Near Bankruptcy
Poynter: McClatchy stock crashed after company warned of pension funding crisis
Developing . . .