This report means that MNI can forget any institutional investments in the forthcoming future. It serves as fair warning that MNI is worthless, and any institution investing the money of others in it could face lawsuits for making unwise investments.
What it means for MNI's future is equally obvious. There will be no more loans because banks face similar challenges if they give MNI any money. So the company has to make it on revenues, which are declining because of the recession, or cost-savings. The easy cost-savings have been achieved, so this means even more layoffs next year. They could try to get out of the hole Pruitt dug by selling off some papers, but this market is ferocious and even healthy newspapers like San Diego and Austin are not moving.
We can all draw our conclusions based on this. There is no future left in this company. Morningstar doesn't mention it, but I see the only way out is bankruptcy and reorganization. It would get rid of Pruitt and the board of directors who put us in this mess.
Morningstar analyst says McClatchy stock could be worthless