Monday, November 9, 2009

Covering the Guarantor

Claremont, New HampshireImage via Wikipedia
It's hard to be a watchdog over government, when the government is paying the kennel fees.

The (Claremont, N.H.) Eagle Times is expected to close on a $250,000 loan this week from Connecticut River Bank, 75 percent of which is being guaranteed by the State of New Hampshire and administered through the state's Business Finance Authority. The loan has a first-year fixed rate of 4.99 percent and thereafter becomes a monthly adjustable rate loan matching the prime rate plus 1.25 percent

Sixty-six full-time, and 29 part-time staffers lost their jobs in July when the Eagle Times entered Chapter 7 bankruptcy. The paper was purchased in September and its staff is back up to 25 full-timers. It remains to be seen how aggressively in its coverage the Eagle Times will assess the fault to state government, when the government can bring default to the Eagle Times.
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