THE DEATH OF PRINT: Why Pigs Can’t Fly

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PHILLY MAG: According to a report released today by Standard & Poor’s, the owner of the Philadelphia Inquirer and Daily News has received a forbearance agreement from its creditors that will run through September 10th. Philadelphia Media Holdings, the investor group put together by publisher Brian P. Tierney to acquire the papers and philly.com in 2006, will face a serious financial penalty — interest on its debt will climb a full percentage point — in exchange for being allowed to skip payments during that period. PMH has also offered to surrender $15 million from its revolving line of credit, reducing it to $35 million. The change in the line of credit is moot, yet speaks volumes. The company is already prohibited from accessing its credit line after violating a term of their loan covenant several months ago. S&P is also reporting that PMH is seeking a $3.2 million letter of credit — a short-term, stopgap funding measure. MORE

INQUIRER: Boscov’s, the last department store chain based in this region, filed Chapter 11 bankruptcy this morning, seeking protection from creditors while it slims down into a company that can compete successfully and provide high-quality goods and services. MORE

BALTIMORE SUN: The retailer’s troubles also are bound to stress already troubled newspapers and other media, which depend on the company for big advertising spending. Philadelphia Newspapers LLC, publisher of the Philadelphia Inquirer and Daily News, is owed $930,047, according to the bankruptcy filing. MORE

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