Wednesday, June 18, 2008

Lee going down?

24/7 Wall Street has rated Lee Enterprises at a 1 in 15 chance of filing for bankruptcy by the end of the year. I'm not sure how long the link will be good, so here is the relevant paragraph:

LEE shares have dropped from a 52-week high of $24.97 to $5.57. The company wrote off $841 million in assets last quarter. Advertising revenue dropped almost 6% year-over-year, and that is almost certainly accelerating. Lee is sitting on almost $1.3 billion in debt and, before the end of the year, it probably will not have the operating income to cover debt service.

Maybe those county legal ads will save it.

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