Wednesday, January 28, 2009

MNG said to have borrowed money to make payroll

The Rocky Mountain News reported today that MediaNews Group's Denver Post improperly borrowed $13 million from the agency that is owned by both papers in order to cover The Post's newsroom payroll.

MediaNews executive Jody Lodovic (pictured) responded by saying, "The agency owes us money, too, I assure you. ... We ordered all the newsprint in December — the agency owes us millions of dollars. Who cares who owes what? Money goes back and forth all the time."

The Rocky, owned by Scripps, was supposed to close earlier this month, but is still open.

If the allegation is true, that the Post is borrowing money just to make payroll, it may indicate the company, which owns most of the dailies in the Bay Area, is facing a severe cash crisis. (Photo credit: MNG Web site)

2 comments:

Anonymous said...

Why didn't scripps just call the police? Who wouldn't like to see Singleton frog-walked out of his office and into a police car!

Anonymous said...

MNG is on its last legs and it's time to start thinking about what will become of these newspapers after bankruptcy. I hope the Guild and others urge the court to sell the MNG papers in the Bay Area to separate owners. These papers have a better chance of surviving on their own rather than being stuck on a sinking ship.