How Bad is it getting out there?

The debt loads of the major papers are becoming a big albatross according to this report by Bloomberg.

Some key points:

• Journal Register may only be worth half the debt it carries
• Tribune could reach technical default by the end of the year
• Morris is on the same timeline
• MediaNews may be very near violation of its covenants

This, of course, follows the news that Philly reached technical default and had an interest payment on a junior note blocked by a senior lender. (Senior Debt has the right to get paid first) The distress in the industry is being felt by the lenders, who are none to pleased given the overall credit markets.

I really would like to see some good news about the financal situation of some newspaper company, but thus far the gloom and doom persists.