Glad Tidings

Another Democrat-controlled newspaper group is filing for bankruptcy. The holding company for MediaNews Group Inc. newspapers, including The Denver Post and San Jose Mercury News, says it plans to file for Chapter 11 bankruptcy protection.

Under the plan, the company's debt would fall from about $930 million to $165 million. Senior lenders would swap debt for stock, the company said. The group of 116 lenders, led by Bank of America, would hold a majority of stock but not voting control.

According to the Wall Street Journal, the holding company, Affiliated Media Inc., claims to have an agreement already in place whereby they will hand a majority of new stock to creditors, a group led by Bank of America Corp.

"People familiar with the transaction said the company has been valued at roughly $200 million, including about $50 million of equity value."

So, you have to ask yourself, really, what kind of people would lend the newspaper group nearly a billion dollars that had no hope of paying the loans back? Only someone who sees value in losing tons of money.