Nonprofit, independent journalism. Supported by readers.

Donate
Topics

Bankruptcy expert speculates Star Tribune might go ‘Chapter 22’

According to the Wall Street Journal, turnaround expert Joseph A.

According to the Wall Street Journal, turnaround expert Joseph A. Bondi is bumming out folks at 425 Portland by speculating the Star Tribune might become a “Chapter 22” — a cute financial-world expression for businesses that emerge from Chapter 11 bankruptcy, only to return.

In a twoparter I did last month questioning the Strib’s still hefty-debt and optimistic sales projections, Carlson School financial prof Andrew Winton used that exact phrase — actually, he referred to it as “Chapter 22 or even Chapter 33” — for businesses such as United Airlines US Airways that go in and out of bankruptcy repeatedly.

At this point, everyone is speculating, but at least Winton isn’t alone. A Strib spokesman declined to comment to the Journal, citing “unprofessional speculation.”