Open Heartland Surgery: Newspaper Chain Files Chapter 11 Bankruptcy

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Citing "significant liquidity challenges" and "weakened operating results," Heartland Publications LLC, which publishes 23 daily newspapers and nearly as many weekly and free papers in nine states, has filed a pre-arranged Chapter 11 bankruptcy in U.S. Bankruptcy Court in Wilmington, Delaware.

In its bankruptcy petition, Heartland listed roughly $134 million in assets and $166 million in debts. Revenues are projected to be nearly 12 percent lower than 2008 results.  Heartland employs 800 full-time and part-time employees and vows to continue its publications in Georgia, North Carolina, Kentucky, South Carolina, Tennessee, West Virginia, Virginia, Ohio and Oklahoma.

Heartland's principal creditor, GE Capital, agreed to reduce the debt owed it to $70 million, from $111 million, in return for a  90 percent ownership stake in the media conglomerate. The year-end proliferation of bankruptcy filings by media groups is sad, but apparently not enough to break your Heartland.