Within the past years, several public newspaper companies have been pushed to the cliff of insolvency. They have taken on too much debt and the downturn in advertising has put them in a position where they cannot cover interest payments.
Journal Register was knocked off The New York Stock Exchange and is in the process of liquidation. The value of its properties has dropped so low that its common shareholders will get nothing and creditors will not recover the amount of their loans. Gatehouse Media (NYSE: GHS) has traded under $1 for weeks and also face delisting. Odds are that its properties will have to be auctioned off.
Saturday, September 27, 2008
247 Wall Street editor: GateHouse Media likely to auction off properties
Facing delisting by the Stock Exchange, GateHouse Media, owner of The Carthage Press and Neosho Daily News, will likely auction off its properties, a top analyst wrote today. Douglas McIntyre, editor at 247wallstreet.com writes: