Tuesday, March 26, 2013
GateHouse Media CEO: Bankruptcy among options being considered
The company lost one-third of its stock value during the day, dropping from six cents to four cents per share before rallying to close at five.
The Wall Street Journal quoted the company's CEO, Michael Reed, as saying that different strategies are being looked at to tackle the ticking time bomb that is the company's billion dollar plus debt.
GateHouse's note is due next year and since the company continues to lose money quarter after quarter, it is obvious GateHouse is not going to be able to pay what it owes.
In addition to a Chapter 11 bankruptcy, GateHouse is exploring attempts to have its debtors settle for 33 cents on the dollar.
Fortunately for Reed and other top officials at GateHouse, the company's overwhelming debt has not kept its board of directors from handing them hefty bonuses year after year, including $1,495,000 in bonuses in 2012, with Reed receiving $800,000 of that total.
In addition to the Big Nickel, GateHouse Media owns the Carthage Press, Neosho Daily News, and Pittsburg Morning Sun in this area.