MINNEAPOLIS (AP) - The Star Tribune of Minneapolis has hired a private
equity firm to advise it, but disputed a published report suggesting it is "on
the brink of bankruptcy."
"The facts are that the Star Tribune currently has sufficient liquidity and
is current on all its debt payment obligations," Publisher and Chairman Chris
Harte said in a statement Sunday evening.
Harte was responding to a New York Post story Sunday that said the newspaper
had hired the Blackstone Group of New York to restructure its balance sheet
after struggling with burdensome debt. The Post story was attributed to "people
familiar with the company."
Harte said in his statement that the Star Tribune, which is owned by Avista
Capital Partners of New York, hired Blackstone "to help us evaluate alternatives
to our current capital structure, but that hardly merits a conclusion that we
are near bankruptcy." He said Blackstone has "substantial expertise" in
restructuring through means other than bankruptcy.
Like most major metropolitan newspapers, the Star Tribune has struggled with
declining revenue from advertising, as more money goes toward Internet
advertising. Earlier this year, the company hired Restructuring Associates, a
Washington consulting firm, to work with newspaper unions to cut costs.
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