Tuesday, December 15, 2009

Minneapolis Star Tribune emerges from bankruptcy - September 28, 2009

The Minneapolis Star Tribune emerged from bankruptcy protection today with its main lenders becoming the new owners and its debt slashed by 80 percent.

Out from Chapter 11, the Star Tribune can now make decisions without a judge's supervision, as Minnesota's largest newspaper and the nation's 14th largest on weekdays tries to ride out an advertising drought and boost revenue in print and online.

The move was largely expected after a federal bankruptcy judge in New York approved the Star Tribune's reorganization plan Sept. 17. The newspaper had filed for bankruptcy protection eight months earlier, saddled by debt from Avista Capital Partners' 2007 purchase of the newspaper from the McClatchy Co.

New board Chairman Michael Sweeney said today was "the first day of a new beginning" as the 142-year-old newspaper got "a new lease on our future."

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