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By David Brauer | Published Fri, Jan 9 2009 5:25 pm
According to a Star Tribune staffer in a Friday newsroom Guild meeting, union co-chair Graydon Royce said to expect ownership's bankruptcy filing "in about two weeks."
The source says Guild leaders aren't sure exactly where bankruptcy will be filed — the Strib does business in Minneapolis, is incorporated in Delaware, but reportedly has New York bankruptcy lawyers. The Guild is seeking its own bankruptcy attorneys and financial experts as it prepares for court.
I trust my source, but will seek confirmation from Royce or co-chair David Chanen once the meeting breaks up.
Update: Chanen confirms the details above, noting that Royce's two-week estimate was "a ballpark guess."
I also asked Chanen if readers would notice any change in their paper after the filing. Would it stop coming? Would it be noticeably smaller?
He said no; newspaper operations continue seamlessly — one of the points of Chapter 11 bankruptcy — while everyone fights in court. The Strib has just bought out 22 workers and recently announced it will combine the A and B sections for three Mondays beginning in four days.
"If two months down the line, they want to immediately chop 25 jobs, they could," Chanen notes — but they would have to talk to the bankruptcy judge first.
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