Tuesday, March 31, 2009

Bankruptcy -- now starring the Sun-Times

Posted By on 03.31.09 at 01:04 PM

The Sun-Times Media Group filed for Chapter 11 bankruptcy Tuesday, joining the Tribune Company, which is already there, and also Creative Loafing Inc., which owns the Reader. All the best newspapers...

Compared to the Tribune Company's $13 billion debt, the $600 million or so the STMG owes the Internal Revenue Service is chump change. The investment bankers that Creative Loafing owes $31 million to don't expect to ever see that money, and to make up for it, they've been trying to take over the Reader and the five other weeklies Creative Loafing controls; it would be interesting -- if perhaps unlikely -- to see the IRS go the same route. Imagine the Sun-Times and the other papers in the Media Group federalized, supported by tax dollars. They could end up the only newspapers still publishing in America. 

Might not happen that way. Here, from blogger Allison Hantschel, is a peroration against Conrad Black and David Radler, the former owners who left the company in this sorry state, that expresses how a lot of present and former STMG employees surely feel.

Here's a pdf of the STMG's bankruptcy petition.

UPDATE: From E&P's Fritz & Jen, who owes what (aside from the IRS):

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