Moody's Investor Service has downgraded credit ratings for GateHouse Media Inc. and raised the possibility that the company could file for bankruptcy to get out from under $1.2 billion in debt.
”The company has a very high debt burden of about one-and-a-quarter billion dollars,” said John Page, a Moody's vice president and senior analyst, in a phone interview. “The amount of cash the company generates is relatively modest in comparison. We feel a restructuring of the debt could well be an appropriate way to address its very heavy leverage.”
GateHouse Media owns The Carthage Press, Neosho Daily News, Pittsburg Morning Sun, and more than 300 newspapers across the United States.