Blackstone Group to Aid Star Tribune
Despite annual losses already totaling to $75 million since 2005, Star Tribune still refuse to file for bankruptcy, stating that such move indicates that the company is indeed bankrupt. Christopher Harte, Star Tribune’s publisher and chairman, states that the company has sufficient funds to pay off any withstanding debts for this year.
Along with such declaration, Star Tribune’s management hired the Blackstone Group to handle the paper’s financial issues and provide guidance for the Star Tribune’s management regarding monetary affairs. The New York-based private equity and investment banking firm also specializes in providing asset management and financial advisory services.
The Blackstone Group’s financial analysts and other professionals have already steered various companies in near bankruptcy. Giant industry leaders Xerox and Bally Total Fitness have acquired the Blackstone Group’s expertise in creating turnaround marketing strategies. Both companies have experienced tremendous growth and increase in terms of profits.
Star Tribune employed the Blackstone Group’s services after the broadsheet failed in meeting their debt responsibilities. In addition, several financing and lending firms announced their refusal to take over Star Tribune and its operations, including Credit Suisse, should the paper go bankrupt.
Star Tribune is Minnesota’s largest, daily-published newspaper. The paper is largely financed by Avista Capital Partners.
Source: Star Tribune hires Blackstone Group to analyze its finances.
Read an article about Blackstone CEO and deal maker Steve Schwarzman.
View the team of Blackstone, including CEO Steve Schwarzman from the Blackstone website.
