In addressing specific concerns about The McClatchy Company (NYSE: MNI), which saw its stock hit an all-time low in Q4, Fitch cites its "inability to deleverage even after repaying significant debt." In September, McClatchy renegotiated $1.175 billion of debt, which includes bank loans and available lines of credit, giving it a bit more flexibility. Its total debt was $2.07 billion at the end of Q3.This highlights the damage from the delayed closure of the Miami land deal. McClatchy had said the proceeds from the sale ($115 million) would have been used to pay down company debt. So the 6 month extension in the deal hampers McClatchy's ability to get out from under its debt.
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1 comment:
Forecasts call for further declines in the retail sector; Large chains closing stores, and some just dying off.
Expect that 2009 will see more double digit declines in newspaper revenues.
Even if McTacky cuts overhead, reducing what little content it self creates, there just won't be the advertiser base to deleverage even a faction of the debt.
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