The newspaper publisher Johnston Press has confirmed it is ending its debt crisis by entering administration and handing control to its lenders, as revealed by The Telegraph.
The embattled publisher of The Scotsman, The Yorkshire Post and the i newspaper is applying for court approval to appoint administrators and execute a pre-packaged sale to a new holding company controlled by the New York hedge fund GoldenTree Asset Management.
I’ve a couple of different times written for the company, widely separated in years. This latest was, umm, three pieces I think, earlier in the year. They’ve managed to keep up their perfect record of not paying me …….
Their underlying idea, buy up those failing newspapers and profit from running them down had merit. It’s rather what the Barclays have done at the Telegraph, sweat out the final years of an assets life. Little to no maintenance, no investment, just such the positive cash flow out.
Hey, it works, or at least can do. Perfectly respectable strategy. Thing is though, you’ve got to buy everything cheap enough for the sweat from those assets to pay for it. Not what they did….