Fun times at Gatehouse

Moody's downgrades Gatehouse's credit rating due to the likelihood of default.

http://www.editorandpublisher.com/eandp/departments/business/article_display.jsp?vnu_content_id=1003832816

Gatehouse shares closed at 44 cents apiece Friday.

http://www.editorandpublisher.com/eandp/departments/business/article_display.jsp?vnu_content_id=1003834622

And on Thursday, the NYSE halted floor trading.

http://www.minyanville.com/articles/NYX-GHS-JRCO-MNI-gci-nyt/index/a/18095

 

Next up on SJ Radio, here's that golden oldie from Lionel Richie, "Penny Lover" ....

 

Very astute move by Gatehouse to snap up dozens of Mass. papers when they had a red balance sheet, and to go public with a stock offering. They started around $22 just over a year ago, I believe.
The only hope for Gatehouse papers, especially the ones I know of in Mass., is for Gatehouse to liquidate or file for bankruptcy and sell off the papers separately. I know the Patriot Ledger people are negotiating a new contract and they're being stonewalled at every turn.

 

How likely is that kind of situation? How many suitors would there be? JRC is cooked, Ottoway is getting out, and doubtful the Fuller family wants to rescue the Enterprise.

 

Ottaway is not getting out. News Corp. tried to dump the Ottaway group when it bought the Wall Street Journal but found no takers.

 

Don't be surprised if that happens by year's end.

 

Now there's a stock working journalists can afford.

 

But they're not exactly likely buyers for Gatehouse, unless Rupert develops an affection for community papers. If he did, there's some decent opportunity to be had for him in the Ledger and Brockton. Could corner southern Mass., for what that's worth.

 

[blue]Maybe the JRC will swoop in and save it.[/blue]

 

terrible news.

the ship is going down faster than anyone anticipated.

 

I have a friend who works at a small Gatehouse paper where every time someone comes back from vacation, they get laid off.

My buddy's on vacation right now and comes back tomorrow. Here's to hoping he still has a job.

 

I used to work at a GateHouse paper, and I still have one of my 401Ks with them. Besides the obvious, I should keep all my 401 K's together, should those still working at GateHouse be worried, or are 401 K's now protected from bad corporate management?