Archive for Sunday, January 18, 2009

Scripps stays quiet on bids for <cite>Rocky</cite>

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— E.W. Scripps, owner of the Rocky Mountain News, gave no word Friday about whether it had received any bids for the 149- year-old newspaper.

But the company said the next step won't be determined for several days at the earliest.

"There won't be an announcement for a while, as we'll spend the next several days working with our broker to evaluate where we are and determine next steps," Scripps spokesman Tim King said by e-mail late Friday.

Meanwhile, the largest union representing workers at the Denver Newspaper Agency said a review of the financial books confirms the agency needs to renegotiate $130 million of debt to avoid default with its banks. The agency handles the business and advertising operations of The Denver Post and the Rocky as part of a joint operating agreement.

Scripps said Dec. 4 the company would take offers through mid-January, leading some local media to speculate the Rocky's last day of publication could be Saturday.

King previously would say only that a "handful" of potential buyers had requested the confidential packet of financial and demographic information Scripps had prepared.

Newspaper readership and advertising revenue are declining sharply nationwide because of the Internet, and the recession has sent many papers into a tailspin.

The situation in Denver is precarious, with the MediaNews Group, owner of the Post, struggling under the weight of $1 billion of debt.

MediaNews CEO Dean Singleton last month requested $2 million of union wage and benefit concessions from the Post and $18 million from the Denver Newspaper Agency.

The Denver Newspaper Agency told union officials concessions were needed by Friday so the agency could attempt to renegotiate the $130 million of debt.

Agency spokesman Jim Nolan declined to comment on the status of the contract concession discussions and whether the deadline was firm.

Teamsters, which represents two DNA unions, was in contract negotiations Friday with the DNA, according to the voice mail message of Local 961 President Matthew Fazakas. Fazakas couldn't be reached for comment.

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