Executives of McClatchy Co. — the owner of the Sacramento Bee, Fresno Bee, Miami Herald and 27 other daily newspapers across the country — put a brave face Thursday on their decision to file for bankruptcy protection.
The filing under Chapter 11 of the Bankruptcy Code would enable the company to manage its more than $700 million of debt, brightening its prospects, they said. In a few months, after a reorganization, “we expect to be even better positioned to … continue delivering essential local news to our subscribers and readers in the communities we serve.”
Yet the story of McClatchy lends itself to a darker spin. The company is likely to emerge from bankruptcy under the control of its largest creditor, the hedge fund Chatham Asset Management.
If we keep looking at newspapers as products owned by shareholders who want a return year over year, it’s not going to work.
Nick Charles, Save Journalism Project
That would be a sharp turn in the…