Singleton Empire on brink of collapse?

If his cash flow can't even meet his debt obligations, he won't be going public. No one will touch that.

 

I think talk of Singleton's demise is spurred by talk of JRC's possible bankruptcy. Though both are heavily in debt, I almost think Singleton's situation might be better because he has more cash flow coming in. Banks these days would probably rather have 70 percent of something instead of 100 percent of nothing. What can his creditors do? Run the papers themselves? Write off the debt and sell the papers to a private equity firm? Who are they going to find to operate the papers and keep money coming in besides Singleton?

 

If this is the case, then Singleton keeps gutting his newspapers and keeps operating them for the sole purpose of paying off his loans. There is no concern for quality or journalistic intergrity. It is just a means to an end to get out of debt. Staffs will continue to get smaller, editions will continue to get smaller, deadlines will continue to get earlier and subscribers and readers will continue to look for other sources of information.

 

What his creditors can do depends on the terms of his obligations. They might be able to replace him and take over operation themselves. All depends on how the agreements are structured.

 

Tucson.... that is, by far, the best avatar and text I have seen on these boards.

Well done.

 

I was laid off in 1995 and my family and friends, in my presence, damned the paper and said they would never buy it again.
I said, thanks for the sentiment, but I still have a lot of friends who work there and they don't deserve to be punished by what happened to me.
In other words, I totally agree with the above ... on both counts. JFinch, spectacular.

 

on a positive note, maybe cnhi will make singleton an offer he can't refuse.

 

If his creditors are banks, they will not do this because they open themselves to lender liability.

 

I laughed outloud at that. I had a mouthful of water at the time...

 

The first crack? Maybe, according to former LANG columnist Paul Oberjuerge, who reports rumblings that chain's flagship LA Daily News may go to Hearst.

http://www.oberjuerge.com/?p=123

 

Not sure "flagship" still qualifies, but they could do worse than Hearst.
What about Denver? Merge in with the Rocky?