Closures unlikely as newspapers miss obligations

The McClatchy Co., one of the largest U.S. newspaper chains and owner of the Sacramento Bee and Miami Herald among other prominent papers, agreed last month to pay higher interest rates and put up more collateral. Story Published: Oct 12, 2008 at 12:02 PM PDT By ANICK JESDANUN, AP Business Writer NEW YORK (AP) - Newspaper companies have been skipping loan payments, missing financial targets in debt agreements and accepting higher interest rates in exchange for more flexibility - and they're not even directly feeling the impact of the credit crisis yet. But don't expect massive sales or closures of newspapers any time soon, even though at least four newspaper companies overburdened with debt have been forced to confront their lenders over the past few weeks. With revenue at newspapers shrinking and few investors willing or... [read full story]