Audio By Carbonatix
After the Rocky Mountain News closed a year ago, the Denver Daily News published a headline reading “We’re a 2-Daily Town.”
It was the scrappy publication’s way of saying to the Denver Post, “Don’t forget about us.” Not that such a thing would be possible given the News‘ recent reportage about MediaNews Group, the Post‘s parent company, which is run by publisher Dean Singleton.
The latest? A report about objections to the recent bankruptcy filing by Affiliated Media, MediaNews Group’s holding company.
Word of the filing went public in mid-January, with early reports suggesting that the prepackaged nature of the bankruptcy ensured smooth sailing.
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But shortly thereafter, the News drew back the curtain on the process, revealing that MediaNews had asked a judge to order Qwest, its phone and Internet provider, not to pull the plug on it during the bankruptcy process — and to give it permission not to print “Debtor-in-Possession” on its checks.
And today, the News has another scoop, disclosing that three creditors have filed objections to the bankruptcy plan in advance of a Thursday hearing in Wilmington, Delaware, before a U.S. Bankruptcy Court judge. The parties in question: Greenco Inc., a subsidiary of the Tribune Company; Bank of New York Mellon; and Larry Wolfe, the landlord for MediaNews’ L.A. property, the Los Angeles Daily News.
According to the News, any of these entities “could ignite… a court battle where the Denver-based newspaper chain… is forced to defend its plans to give creditors $165 million in equity in exchange for $930 million in debut. In other words, they’d get about 18 cents on the dollar.”
If problems arise in the case, the article goes on, “it could threaten a $500,000 bonus MediaNews President Jody Lodovic was promised if the bankruptcy plan is approved. Documents in the case show that Lodovic could get as much as $2.25 million this year while chief executive Singleton is in line to get $1.49 million.”
Thanks to info like this, Singleton and the rest of the Post/MediaNews Group braintrust won’t be forgetting about the Denver Daily News anytime soon.
