Dallas: McClatchy newspaper chain files for bankruptcy

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The owner of the fort worth star telegram files for bankruptcy saying it's got more than seven hundred million dollars in debt KRLD is out of the sky a talk to their business analyst about what it means for the newspaper industry McClatchy owns a thirty newspapers across the country it's the second biggest newspaper owner in the country the fort worth star telegram is it's only paper in Texas Carol the business analyst David Johnson says all newspapers been trying to figure out how to draw an audience when people will not wait until they're newspapers deliver the next morning to get their news this is been like an iceberg just sort of slowly moving every company recognizes they have a lot of exposure they've been trying to restructure and they've been trying to find relevancy this is a challenge for newspapers why do you need a newspaper why do you need the content they've got aggressively into digital the got a half million people that are paying for digital service may and they're trying to find some relevance Johnson says that quest for relevance has led to a push for more digital content he says that includes posting articles online the papers have also been focusing more on video and slide shows the newspapers have seen this coming for a long long time and the question is you know how do you stay alive in doing this the the the New York times the Wall Street journal The Washington Post have all been very successful in the online business but the question is what happens to these smaller these mid size and small town he says papers have also started working together on projects that are covered more widely of the star telegram worked out a deal with the Dallas morning news some time ago and they sure they sure journalists you know why I have a morning news add a star telegram guy both covering the ranger games but Johnson also says part of the problem is pensions a class she bought another chain of newspapers in two thousand six you know here's the rub though the bottle and sold a lot of newspapers over time they bought the star telegram in in six from knight Ridder and then they went in and try to cut costs and so they talk to the employees is a well we're going to give your retirement package we're gonna make it attractive for you to leave to cut down their overhead well all of a sudden you build up a big obligation for pensions back in January they also they were going to have to not pay some of those pensions for a while so would working out this bankruptcy one of the biggest obstacles was working out something with the pension benefit guaranty corporation because you can't just have people that you promised it alive time retirement the bankruptcy filing asks for sixty percent of the debt to be eliminated Johnson says those people receiving a pension maybe worried at that could lead to them getting smaller checks in some cases what the P. B. G. C. will allow them to do is go back and say well instead of paying a hundred percent you can pay of you know sixty percent of what you were what you had guaranteed yet that keeps the company going perhaps but what about that person who retired thinking they were gonna get X. amount of money other only getting sixty percent of you know those are the real casualties the client uses it received at fifty million dollars from a financing company to keep running during bankruptcy proceedings and if the court approves the deal the thirty papers will be turned over to the hedge fund it's also McClatchy's biggest creditor the nonprofit pen America says it works to defend free expression in America says that twenty percent of all newspapers in the United States of closed since two thousand four in print journalism has lost forty seven percent of its jobs newspapers of lost forty five eight billion dollars in ad revenue Alan sky newsradio ten eighty

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