The company that owns the Bend Bulletin and about a half dozen other newspapers is out of bankruptcy. As David Nogueras reports, Western Communications will move forward with a restructuring plan signed by a judge in Portland Wednesday.
The company filed for Chapter 11 back in August after it failed to renegotiate an 18 million loan with Bank of America. Gordon Black is Western Communications’ President. He says the bank demanded to be repaid in full when Western failed to meet certain profit ratios. He says that essentially doubled the interest rate it was paying to about 12 percent. Under the restructuring plan, Western will pay B of A at a fixed rate of 4 and a half percent over the next 30 years.
Company President Gordon Black explained, “While this marks a milestone and gets one issue off the table, it doesn’t remove all of our difficulties because of the economy and where we are there. So there’s a lot of heavy lifting left to do.”
Financial disclosures filed as part of the bankruptcy do shed some light on the problems facing the company. In the first two months of 2012, Western reported a net operating loss of about $900,000.