August 26, 2011
August 26, 2011
Western Communications, which is the publisher of the Oregon newspapers, Bend Bulletin, Baker City Herald and the Redmond Spokesman filed for Chapter 11 bankruptcy protection this week. The publisher was unable to resolve issues over its $18 million loan with Bank of America.
Bank of America was criticized on several fronts. A Western Communications CFO said, “They tried to work with us all right—by doubling our interest rate,” and also, “Based on what they told us, the bank in general decided that they didn’t like media companies any more and they particularly didn’t like newspapers.”
Bend Bulletin Editor In Chief said, “It simplifies the issues, but is destructively misleading, to view this Chapter 11 bankruptcy filing as a fight only over money.” and “It is a fight over values, an assessment that admittedly contains a measure of self interest.”
This followed up on last week’s criticism which said it was “a sad, seemingly avoidable and unnecessary dispute with a once-trusted partner. The financial, banking and real estate worlds were in collapse, which certainly put unholy strains on the B of A, as well as all banks. In fact, it took billions of dollars in taxpayer support to stabilize the bankers, which The Bulletin supported in the interest of all small business debtors.”
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