Herald-Dispatch has problems

[genlock]

CHARLESTON, W.Va. -- Huntington-based Champion Industries has received a notice of default on a $70 million loan the company used to purchase The Herald-Dispatch newspaper in 2007.

Champion is trying to restructure the loan with Fifth Third Bank, which is serving as the administrative agent for various lenders on the loan, according to a filing with the Securities and Exchange Commission.

As of Jan. 31, Champion still owed $69.4 million on the loan.


That was from the Gazette.

[CoolBreeze]

Good thing they're only the administrators, because Fifth Third lost nearly $2.2 billion in the fourth quarter, mainly due to rising defaults on loans, charges on goodwill and credit costs. For the year, Fifth Third reported a loss of $2.2 billion, or $3.94 cents per share, compared with earnings of $1.1 billion, or $1.99 per share in 2007. Late last year, the bank received $3.4 billion in government aid during the fourth quarter as part of the Treasury Department's capital purchase program aimed at boosting lending to businesses and consumers.

Is this the blind leading the blind?

[The Interpreter]

Quite frankly, if that newspaper were to sell on the open market today, I would be shocked if they got even $10 million for it. The market for newpapers is down drastically since Champion, in my opinion, very unwisely grossly overpaid for the Huntington title.

[AC Carter]

Grossly overpaid might be an understatement.

[Mike]

Disclaimer: I work for Champion.

[Mike]

http://www.dailymail.com/Business/200904150999

[Hoosier Daddy]

Business hint of the day: Don't pay an inflated price to buy in to a dying industry.

[genlock]

Bray Cary was itching to buy a newspaper, this may be his opportunity.
He could also get a deal on the San Fran Chronicle, Boston Globe and the Rocky Mountain News.
If Bray had a pot to piss in, that is.

[Bob Campbell]

Sad days for the newspaper industry. 5 years from now there won't be more than a handful printing on paper, if any survive at all. They came late to the online world and never could figure out how to do it right.
There's a local Magazine here called Winston Salem Living. They've gone totally digital with a mag that looks awesome and is very interactive. April is their first fully digital edition. They didn't print at all. Ad rates could be reduced greatly due to reduced cost and they're still making money.
Neat software makes it read like a magazine, not a scroll down thing like most websites.
Check out www.winstonsalemliving.com and see what you think.

[Mike]

One source of revenue for the H-D... Billing Clear Channel for basically reading the front page and calling it their "news"

Seriously, I wish they'd do it.

As for digital editions, the H-D now has an option to subscribe and get the WHOLE paper via the internet.

http://media.herald-dispatch.com/epaper/

HD subscribers get that for free, btw. Not many papers do that.

*DISCLAIMER* I work for Champion. My opinions are my own. I don't have ANY involvement with the HD other than they are a division of Champion.

[genlock]

The H-D is at least trying to cope with the changes in media.
Today there was a shooting near 16th Street and the on-line H-D had a story
on it quickly. They hav e been doing this for a while and usually beat WSAZ
to the story and always beat WOWK. Maybe someone there is thinking
past the concept of deadline. A shooting near 16th Street is news but it is not unusual.