The Bend Bulletin鈥檚 parent company in in Chapter 11 bankruptcy proceedings, again.
Western Communications owns seven newspapers across the Pacific Northwest, many in rural communities where no one else is delivering local news. It emerged from another bankruptcy in 2012.
Court records show the corporation has $7 million in unsecured debts. It鈥檚 behind on federal taxes, with about $1 million owed to the Internal Revenue Service. Recent reporting by OPB revealed , too. Employees have experienced years of layoffs, late paychecks and furloughs. Since the first time Western Communications entered bankruptcy proceedings eight years ago, it has shed 135 jobs, as per court filings, and still has about $18.9 million in secured debt from that settlement.
On Tuesday, the Bend Bulletin told its newspaper readers to expect 鈥渃hanges in the coming weeks and months,鈥� that will make the paper more economically stable.Western Communications president John Costa did not respond to emails for further comment.
鈥淚 can only assure people that we鈥檙e working as hard as we can and in good faith to make sure that that the Bulletin goes forward,鈥� Costa told OPB 11 days before the filing.
The company owns four other newspapers in Oregon: the Curry Coastal Pilot, the Redmond Spokesman, the La Grande Observer, and the Baker City Herald; plus two in California: the Del Norte Triplicate, and the Sonora Union Democrat.
Western Communications鈥� declared its top 20 unsecured debts range from $946,000 owed to a newspaper cooperative that sells printing and distribution supplies, to $5,500 for a syndication service. Also on the list: $59,000 for a Bend fireworks show.
On Jan. 14, the company paid its bankruptcy attorneys a $100,000 retainer. On Jan. 25, the court granted the newspaper chain鈥檚 request to access $1.6 million in cash collateral to keep the newspapers running without harming the company鈥檚 value.
In a Jan. 22 statement, Western Communications Chairwoman Betsy McCool wrote of the bankruptcy filing: 鈥淭his is the only way we can preserve our creditors鈥� investments and our owners鈥� interests in valuable community assets.鈥�
Under Chapter 11, the company will argue its finances can be reorganized to be profitable again, despite the present situation.
This story was updated on Jan. 25, 2019 to reflect court filings.
Copyright 2019
