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Now Philly's bankrupt

Discussion in 'Journalism topics only' started by CatchMeUp, Feb 22, 2009.

  1. CatchMeUp

    CatchMeUp Member

    Union just sent this out...

    Dear Guild Member,

    As you all should be aware, Philadelphia Media Holdings, (“PMH”), the owner of the Philadelphia Inquirer and The Daily News, has filed for Chapter 11 Bankruptcy protection.

    As hard as it may sound, please stay calm. The company is still in business, the papers are still publishing and you should still report for work.

    Here is what this means to our members and how the filing affects our contract:

    The Chapter 11 Bankruptcy process is intended to permit a company to continue in operation by restructuring its contractual and financial obligations. Because Guild members provide essential services, your wages and benefits under our collective bargaining agreement for services rendered, after the petition was filed, will continue to be honored.

    Before PMH can take any action to modify any of its obligations under our contract, it must negotiate in good faith with the Guild and prove that the contract changes it seeks are necessary to permit the reorganization and prevent the liquidation of the enterprise.

    The Guild Executive Board has already taken steps to assure that we obtain all of the bankruptcy filings. We will monitor the proceedings and take appropriate action to enforce our collective bargaining agreement and protect your rights.

    Even though a bankruptcy petition has been filed:

    * Our contract remains in full force;
    * Your wages and benefits will continue to be paid;
    * We retain the right to grieve and arbitrate contract disputes; and
    * No unilateral changes to our contract can be implemented without prior negotiations.

    If the Employer requests that we meet to negotiate contract modifications, we will, of course, immediately notify you of any such negotiations. As in all collective bargaining situations, we will bring any tentative agreements involving modifications/changes to our contract to the members for ratification. In addition, we will keep you advised of all developments during the bankruptcy, especially any events that involve the Guild contact, your rights, and the Employer’s obligations pursuant to it.
  2. slappy4428

    slappy4428 Active Member

    Not good
  3. CatchMeUp

    CatchMeUp Member

    on the philly.com site, story quotes the owner as saying they're profitable.

    here's the lede:

    Philadelphia Newspapers L.L.C., which owns The Inquirer, the Philadelphia Daily News, and Philly.com, filed for bankruptcy protection today in a bid to restructure its $390 million in debt load.

    The company, bought by a group of Philadelphia-area investors for $562 million in 2006, said the voluntary Chapter 11 filing would not interrupt its daily operations.

    "This restructuring is focused solely on our debt, not our operations," chief executive officer Brian P. Tierney, who led the group that provided about $150 million of the purchase price three years ago, said in a news release.

    for the rest, http://www.philly.com/philly/hp/news_update/20090222_Inquirer_owner_files_for_bankruptcy.html

    "Our operations are sound and profitable," said Tierney, referring to operating profits before interest and certain other costs.
  4. Angola!

    Angola! Guest

    Does being profitable matter when you owe $390 million?
  5. shhh, don't worry about that Gola. By the way, will you loan me a $1 million? I'll pay you back at a rate of 10 cents a day.
  6. podunk press

    podunk press Active Member

    I especially loved this line: "As hard as it may sound, please stay calm. The company is still in business, the papers are still publishing and you should still report for work."

    I don't think journalists were reading this at work, then throwing their monitors across the room and looting from the supply closet.
  7. steveu

    steveu Well-Known Member

    Remain calm! All is well!!

    I couldn't help it, that Kevin Bacon reference just snapped into my head.
  8. DanOregon

    DanOregon Well-Known Member

    Last edited by a moderator: Dec 15, 2014
  9. Ben_Hecht

    Ben_Hecht Active Member

    Yeah, you barged in to buy the thing, and now you want relief -- from guess who?

    F off, Tierney, you fat load.
  10. Mediator

    Mediator Member

    Conventional wisdom the last few years has been, debt isn't a bad thing. That's why corporate types bought up newspapers and leveraged them to the gills.

    Time to reconsider that, geniuses.
  11. Ben_Hecht

    Ben_Hecht Active Member

    The great escape clause in leveraged buyouts of the past quarter-century has always been: if things don't work out, flush the workforce.

    Working great. Middle class destroyed, no one left to buy consumer goods at the volume at which business has become accustomed, economy craters . . . way to go.
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