McClatchy renegotiates credit agreement with lenders

Reuters:

McClatchy said on Friday it has amended a credit agreement with its lenders, something that would help the U.S. newspaper publisher avoid defaulting on its debt.

The agreement covers $1.18 billion in debt, much of which stems from its purchase of Knight Ridder Inc in 2006.

It is the latest in a series of moves by McClatchy, which publishes papers including the Sacramento Bee and Miami Herald, to cut costs and strengthen its financial position as it deals with a severe downturn in advertising revenue that is the lifeblood of most newspapers.

"I think that the bottom line is that as we looked to 2009, we did not know what the economy was going to bring -- what the financial crisis was going to do," spokeswoman Elaine Lintecum said.