Miami Herald declares bankruptcy
To cope with the crisis the company has obtained financing around 50 million dollars
The McClatchy Publishing Group, which has media such as the Miami Herald and the Sacramento Bee, announced in a statement to the dam its decline in bankruptcy, even though it is operating in complete normality.
Given the current status, the company keeps reorganizing its structure to deal with the main debts of a business that is in decline and for this the solution is to execute a plan that allows its more than 30 newspapers to continue functioning as they did so far.
The initiative will be carried out with financing obtained close to the 50 million dollars that, together with the cash they have, expect to provide ample liquidity to meet their commitments and complete the reorganization process in the coming months.
The president of the board of directors, Kevin McClatchy, said that the company will continue to function “in the same way that the previous five generations of his family have done… This restructuring is a necessary and positive step for the business and the entire board of directors has made great efforts to ensure that the company can operate as usual throughout this process.”
For McClatchy’s first executive, Craig Forman, an organized capital restructuring is representative for local journalism as well as allowing the group to continue pursuing its digital transformation.