In response to MediaNews Group's announcement of a "pre-packaged" bankruptcy filing for its holding company, Affiliated Media Inc., top Newspaper Guild leaders met Saturday to discuss the impact. Guild leaders said their attorneys are reviewing all aspects of the change, "are taking the situation very seriously" and issued the following update. -- Joe Strupp *********************
By now you've all seen the news that MediaNews has, in consultation with its lenders, created a "prepackaged" bankruptcy filing for its holding company, Affiliated Media Inc. That means instead of filing and then dealing with the debt afterward, there is already a plan to address the debts owed to creditors.
The company has said that daily newspaper operations will not be affected, and employees will continue to receive pay and benefits as usual. At this point, we have no reason to disbelieve these statements.
That said, we are taking the situation very seriously, seeking research and resources from the highest level of the Guild - and plan to hold the company to its promises. We have retained legal counsel with expertise in bankruptcy proceedings and will take all necessary steps to ensure our voice is heard and the interests of our members and retirees are protected.
Earlier this week our Newspaper Guild staff began pulling together research and resources on restructuring scenarios. Carol Rothman, the Guild's secretary-treasurer, has made herself available to run through various scenarios related to the debt restructuring and to answer questions about what might happen next.
"The Guild, with help from CWA, has been proactive in addressing bankruptcies in our industry. Being named to the creditors' committee in five cases is one example. We must get our members, locals and contracts through to the other end of this process, with some confidence that they can influence the results," Rothman said.
It's important to note that, unlike many of the high-profile media company bankruptcies, the company that operates our papers is not planning to file for bankruptcy reorganization. Rather, the MediaNews holding company -- Affiliated Media Inc. - is filing. In general, a holding company controls a company's stock and oversees top management but does not run day-to-day operations. According to the company's statements, the debt to be restructured is related largely to past purchases of newspapers, not bills to local vendors at individual properties.
Union leaders from MediaNews papers around the nation are meeting this weekend in San Francisco to discuss this news, its consequences, and general bargaining issues. It's no secret that MediaNews has struggled mightily over this past year to make debt payments, with many layoffs and cuts as a result. We are heartened by management's portrayal of this debt reorganization as a change for the better - and are prepared to work together to rebuild our industry.
Much more E&P In Exile here.
Jesus Fried Christ! I feel so bad about this, but how to help? I can relate, having recently been a public affairs flack at Guantanamo Bay, providing me with a new understanding of arbitrary dismissal. Fortunately, my current job as a writer at the Guam legislature is putting food on the old family table. I wish you all the best and I've been reading your former publication for years. Hope to do so again.
ReplyDeleteConsolidation is key, over spending is what has got this country in the dumps, 2 wars struggling economy, huge deficit were is obama's big change.
ReplyDeleteis this still a major topic.
ReplyDeleteGreat post, keeping track of work is whats key.
ReplyDeleteThanks for the read.
ReplyDelete