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BrauBlog

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    Philly's newspaper bankruptcy: nailing lenders, not labor

    By David Brauer | Published Mon, Feb 23 2009 10:10 am

    Every bankruptcy is like a snowflake, and no one knows exactly how the Philadelphia Inquirer and Daily News Sunday filing will play out, but there's at least one stark difference with the Star Tribune's travails.

    According to the New York Times, publisher Brian Tierney "signaled that his company’s primary aim in bankruptcy would be to seek concessions from the consortium of banks that hold its debt, not from the papers’ labor unions. 'This restructuring is focused solely on our debt, not our operations,' he said."

    The Inky's debt is in the Strib's ballpark ($390 million) and 2008 operating profits are also roughly equivalent ($36 million). Both papers were bought by private owners at about the same time, and have similar circulations. I'm not sure how the two media companies' labor costs compare, however.

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    minnpost.com/braublog

    David Brauer authors Braublog and is MinnPost's local media reporter. He's covered media and politics as a writer and editor since 1983 for City Pages, the Southwest/Downtown Journal, KFAN and KSTP-AM, Mpls.St.Paul, Minnesota Monthly, Law & Politics, the Business Journal, KARE11 and national outlets. Follow him on Twitter. Email: dbrauer [at] minnpost [dot] com. 


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