Low 'Marks' for Bertesmann in Harsh 2009 Economy

Image by Alexander Smolianitski via Flickr

Media conglomerate Bertelsmann, whose holdings include RTL radio & television co. and publishing houses Gruener & Jahr and Random House, blamed the global economic downturn and an asset devaluation for a $111 million net loss in 2009.

In contrast, the media giant realized a $192 million profit in 2008. Overall, sales declined by 5 percent last year to $21.1 billion. A family trust is the principal owner of Bertelsman, though the company reported that shareholders would receive a total $81.2 million in dividends despite last year's net loss. 

MediaNews Group's Colorado Rocky Finances

Image via Wikipedia

The insolvency beat goes on for ad revenue-strapped, circulation-starved newspaper conglomerates with the announcement that  Denver-based MediaNews Group, Inc. ("MNG") will shortly file a pre-approved Chapter 11 bankruptcy.

The financial restructring plan, which affects Affiliated Media, Inc., an MNG holding group, will give lenders an 80 percent ownership stake in the entity and leave current management intact, though shareholders will lose the value of their holdings. In return for the 80 percent equity, principal lenders, headed by Bank of America, will reduce MNG's existing debt to $165 million from its current approximate $930 million. Reportedly, 95 percent of the media giant's lenders and 91 percent of its bondholders have signed off on the restructuring plan.

The proposed bankruptcy package does not involve individual MNG newspapers, just the Afilliated Media holdings. Among MNG properties are The Oakland Tribune, The Berkshire Eagle, The Salt Lake Tribune, The St. Paul Pioneer Press, The Detroit News, and The Denver Post.