In case you missed it, there are other problems for the First Family at Happy Hollow. Among other things:
Less than three years after the New York Times Co. was forced to slash its dividend to save cash, members of the papers founding family pressured management to restore the rich payout.
Members of the Ochs Sulzberger clan are reportedly unhappy that the once-mighty and now struggling company has not been able to dole out the dividend, which was a major source of income for the family whose trust controls the company through a dual-class share structure.
Some family members had put pressure on Chairman Arthur Pinch Sulzberger, Jr. and recently ousted CEO Janet Robinson to reinstate the dividend, according to a new report.
Seems like granny passed away last February and that triggered a boatload of estate taxes. Thus, the need for even more filthy lucre.
Not to worry, however. At least the money-losing side of the business, their Internet site, is growing. Maybe they can eventually make things up in volume eventually, providing they don't go broke first.
Media General to face debt crunch within weeks
Rick Edmonds by Rick Edmonds Published Jan. 26, 2012 5:01 pm Updated Jan. 26, 2012 5:40 pm
On Thursday, Media General publisher of the Richmond Times-Dispatch and the Tampa Tribune reported a net loss for the fourth quarter of 2011 and for the full year.
That was not the really bad news, however.
Management announced that it is uncomfortable with its ability to remain in compliance with the terms of its loans, which are tightening each quarter of 2012.
In a conference call with analysts, CFO James Woodward said the company is working with advisers to get out of trouble. It hopes to have a proposal within two weeks to renegotiate the terms of the loans and/or extend their maturity date (currently March 2013).
CEO and President Marshall Morton added that the company would consider possible asset sales of a newspaper property or a local TV station as part of a longer term resolution of the debt issue.