By: Media General Inc., which publishes the Richmond Times-Dispatch and other newspapers, said Wednesday it has reached new terms with lenders, giving it breathing room as its peers continue to contend with high debt and weak ad prospects. Its shares rose 12 percent.
Details are to be disclosed when the deals are completed next week. In a statement, Media General said the new terms "will provide us with the flexibility we desire, and at a cost that will be manageable."
Concerns about the future of newspaper publishers grew this week after Tribune Co., owner of the Los Angeles Times, Chicago Tribune, The Sun of Baltimore and other dailies, filed for Chapter 11 bankruptcy protection Monday.
Several publishers have been negotiating with their lenders for greater flexibility on the financial targets defined in their loans.
McClatchy Co., A.H. Belo Corp. and Lee Enterprises Inc., and now Media General, are among the newspaper publishers that have successfully negotiated new terms, giving them greater freedom to operate. Media General has been selling broadcast stations to pay down its debt, which stood at $750 million on Sept. 30, down from nearly $900 million at the start of the year.
Media General shares were up 19 cents at $1.77 in morning trading.
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