Lee filing bankruptcy

[SF_Express]

http://www.poynter.org/latest-news/mediawire/154787/lee-enterprises-will-file-for-bankruptcy-after-debt-renegotiation-fails/

Best to all of those involved, including my hometown newspaper. They say daily operations won't be affected.

 

[Stitch]

Big businesses are praised for skirting out on debt, but if an individual does the same, they are bad people.

 

[HanSenSE]

http://www.poynter.org/latest-news/mediawire/154787/lee-enterprises-will-file-for-bankruptcy-after-debt-renegotiation-fails/

Best to all of those involved, including my hometown newspaper. They say daily operations won't be affected.

That's what they're telling us too. Sounds like the bankruptcy is designed more to force a few holdout debtors into terms most of the others have accepted.

EDIT: Oh, and, thanks.

 

[BillyT]

Got one of their papers in our town.

 

[Tarheel316]

Sure seems that way Stitch.

 

[LanceyHoward]

Big businesses are praised for skirting out on debt, but if an individual does the same, they are bad people.

I read somewhere once that the safest mortgage loan was to the salesman. The riskiest was to the general manager. People from lower socioeconomic groups tend to treat debt as a moral obligation. More affluent people treat it as an investment decision. If the underlying collateral drops in value the affluent are more likely to cut their losses.

I don't know if this is true. But what was the editorial position of Lee on mortgage relief?

 

[Drip]

Big businesses are praised for skirting out on debt, but if an individual does the same, they are bad people.

I hear ya. WTF is up with that?

 

[micropolitan guy]

Big businesses are praised for skirting out on debt, but if an individual does the same, they are bad people.

The story I read said the debt was being restructured, with the approval of 94 percent of the creditors, and that all creditors will be paid.

 

[Steak Snabler]

I thought this thread was going to be about Jarrett Lee ... or Cliff Lee ... or maybe Bruce Lee ... or about 100 other people before I would have thought of Lee Enterprises.

 

[SportsGuyBCK]

http://www.poynter.org/latest-news/mediawire/154787/lee-enterprises-will-file-for-bankruptcy-after-debt-renegotiation-fails/

Best to all of those involved, including my hometown newspaper. They say daily operations won't be affected.

They always say that ... it usually turned out to be bull**** ...

 

[SF_Express]

I thought this thread was going to be about Jarrett Lee ... or Cliff Lee ... or maybe Bruce Lee ... or about 100 other people before I would have thought of Lee Enterprises.

Hence the placement on the journalistic topics only board. Clears the confusion from the outset.

 

[LanceyHoward]

Big businesses are praised for skirting out on debt, but if an individual does the same, they are bad people.

The story I read said the debt was being restructured, with the approval of 94 percent of the creditors, and that all creditors will be paid.

Then why are they hiring bankruptcy attorneys?

 

[micropolitan guy]

Because they might know a lot more about the process than divorce lawyers or personal-injury lawyers?

 

[Stitch]

Big businesses are praised for skirting out on debt, but if an individual does the same, they are bad people.

The story I read said the debt was being restructured, with the approval of 94 percent of the creditors, and that all creditors will be paid.

Then why are they hiring bankruptcy attorneys?

Lee is trying to force the holdouts to agree to a delayed repayment schedule. The risk for the creditors is it's just delaying the inevitable haircut. Stock holders get slightly screwed over as their shares are diluted to 87 percent of the total shares as Lee will issue more shares.

 

[Mark2010]

Talked to a friend last night who writes for a Lee paper. No changes in the day-to-day operations. No one's getting raises, but that hasn't happened in at least 2 years at their shop, so no one was expecting anything. Christmas bonuses are a thing of the ancient past. They've cut so much staff there really isn't anything left to cut anymore.

Seems like a business/legal move and not much more.

 

[BrianGriffin]

I thought this thread was going to be about Jarrett Lee ... or Cliff Lee ... or maybe Bruce Lee ... or about 100 other people before I would have thought of Lee Enterprises.

Poor financial dealings have cost Jarrett Lee his starting job.

 

[Tucsondriver]

Appears to be welcome news on Wall Street. Their stock value soared 33 percent today, although I'm not sure a 71 cent stock inspires too much confidence...


http://finance.yahoo.com/q?s=lee&ql=1

 

[LanceyHoward]

Big businesses are praised for skirting out on debt, but if an individual does the same, they are bad people.

The story I read said the debt was being restructured, with the approval of 94 percent of the creditors, and that all creditors will be paid.

Then why are they hiring bankruptcy attorneys?

Lee is trying to force the holdouts to agree to a delayed repayment schedule. The risk for the creditors is it's just delaying the inevitable haircut. Stock holders get slightly screwed over as their shares are diluted to 87 percent of the total shares as Lee will issue more shares.

So Lee creditors agree to wait on the 995M. Thier incentive is to receive 13% of the company, currently worth about 5M. And because the creditors agree to receive this common stock, which is worth less than one percent of debt outstanding everyone agrees to live happily ever after. I admit to having no experience in these things but I wonder if the full story is out there yet.

 

[HanSenSE]

(bump) all goes according to plan ... thank Tebow:

http://www.nwitimes.com/business/local/court-approves-lee-enterprises-restructuring-plan/article_bfb28f3a-cc9c-5916-9922-a98dabb25760.html

 

[lone star scribe]

They've cut so much staff there really isn't anything left to cut anymore.

I've heard that so many times. It's never true. They always find someone or something they can do without.