The Sun-Times files for bankruptcy
Two can play the bankruptcy game, Tribune
Do not be alarmed, Sun-Times readers! The Sun-Times Media Group filed for bankruptcy in a Delaware court this morning, but you will still get your morning paper! For now…
In a letter posted on the Sun-Times' website, chairman and interim CEO Jeremy Halbreich writes, “Please be assured that this action does NOT mean the Company or our newspapers or online sites are going out of business.” And a FAQ page on the company's website states that readers can expect no change in content both online and in print while it sorts out the bankruptcy.
Newspapers have hit tough times, with the Tribune Company (owners of the Chicago Tribune and Cubs) filing for bankruptcy in December of 2008, Denver’s Rocky Mountain News closing up shop, and The Seattle Post-Intelligencer and The Christian Science Monitor moving all of their content online. Unlike those other papers, however, the bulk of Sun-Times Media Group's debt belongs to Uncle Sam.
Officials from the Internal Revenue Service say the paper owes them as much as $608 million in back taxes and penalties from the reign of former controlling owner (and current prison inmate) Conrad Black, who was caught stealing funds from the paper. “Unfortunately, this deteriorating economic climate, coupled with a significant, pending I.R.S. tax liability dating back to previous management, has led us to today’s difficult action,” Halbreich says.
Bankruptcy may be difficult for the company, but with no projected changes in quality and delivery of Oprah’s favorite paper, Jane P. Chicago can continue enjoying her Sun-Times on the train—or just read the news online for free.
