SINGLETON MESSAGES STAFF

MediaNews nearing debt deal with banks

Singleton asks patience of employees

18 Dec 2009

Media Workers Guild

MediaNews CEO Dean Singleton and President Jody Lodovic said Thursday that the company is close to an agreement with its banks on a debt restructuring plan.

Once the plan is completed toward the end of the first quarter of 2010, they added, the company expects to have a "manageable level of debt" and will look forward to "a changing but exciting future."

The economic downturn at MediaNews has brought reduced budgets, layoffs, suspended 401(k) contributions, higher health care premiums, paycuts and unpaid furloughs.

But in a year-end message to employees, Singleton and Lodovic said it's premature to start discussing recovery in compensation and staffing. 

"The company must see clear evidence of improving economic conditions before such decisions are made," they said.

Read the memo.