McClatchy Company Filed for Chapter 11 Bankruptcy Protection in February
Sacramento Mayor Darrell Steinberg hopes “Sacramento Bee” will come under local ownership after the newspaper’s owner, McClatchy Co., filed for bankruptcy protection.
While speaking at a local radio station, Mayor Steinberg also outlined how he plans to preserve the local ownership 163-year-old newspaper.
The company which owns a series of other papers, including Modesto Bee and Fresno Bee, filed for Chapter 11 bankruptcy protection on February 13.
The company announced plans to re-organize its newsrooms as it aims at bouncing back from financial turmoil. The company has since received $50 million debtor-in-possession financing, McClatchy CEO Craig Forman.
He said the company seeks to settle its $700 million debt. The company also plans to hand over the control of the paper to a hedge fund.
Plans are underway to withdraw the listing from the New York Stock Exchange as a publicly-traded company.
McClatchy expects $183.9 million in fourth-quarter revenues, a 14% drop from a year earlier. The paper’s fortunes have been declining in the last six consecutive years.
The company will also plan to address concerns over pension payments.