Lee Enterprises, owner of many area newspapers, files for bankruptcy

Lee is the third-largest newspaper publisher to file for bankruptcy, behind the MediaNews Group in 2010 and the Tribune Company in 2008, as readership and advertising revenue continue to dwindle across the industry.

Lee was founded in 1890 in Ottumwa, Iowa, by A.W. Lee. Most of the company’s newspapers trace their beginnings to the mid-1800s. The luminaries who have worked for the company’s papers include Mark Twain, Willa Cather and Thornton Wilder.

The company plans to repay its creditors in full and will use the bankruptcy to essentially extend the maturity of about $1 billion in debt that was coming due in April.

Under its plan, the company will push out that repayment to 2015 and 2017, although with higher interest rates, according to court documents.

The company’s creditors already have voted to back the plan. Lee expects to emerge from bankruptcy in the coming months.

The company’s shareholders will not be wiped out, as is typical in bankruptcy. However, Lee will issue new shares to creditors that will dilute the stock value held by current shareholders by around 13 percent.

Lee employs 6,200 people, according to Dirks, Van Essen & Murray, a firm that assists in the sales of daily newspapers. The company’s papers have a daily readership of 1.3 million, according to court documents.

In 2005, Lee acquired the Pulitzer newspaper publisher in a deal financed primarily through debt.

New York Times

I've heard many long time reporters in this area have taken retirement or moved elsewhere.  You might find the blog "Lee Enterprises Sucks" to your interest.  A billion dollars in debt is, well, a lot.

Newspapers should be locally owned and operated.