Western Communications, which owns The Bend Bulletin and other properties, has filed for reorganization under Chapter 11 in a dispute with its biggest lender.
Western Communications, which owns The Bend Bulletin and other properties, has filed for reorganization under Chapter 11 in a dispute with its biggest lender.
Western Communications Inc. blamed its Chapter 11 filing on its stalemate with Bank of America over an $18 million loan, a debt that it has struggled to repay since the crippling advertising declines of 2007.
Chief Financial Officer Karen Anderson said the bank’s latest demands would force the company to lay off “mass quantities of people.” Anderson explained that the company’s talks with the lender started in 2007 after the company failed to generate enough profit to meet a ratio required under the loan terms, leading it to negotiate a series of forbearance agreements that came with expensive interest rate swings.
Read more at The Wall Street Journal.
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