Register Parent’s Bankruptcy – The Ultimate Spin

Freedom_Communications_Logo

It was reported on this Blog a few days ago that Freedom Communications, the parent company of Orange County’s Register newspaper, was likely to file Chapter 11 bankruptcy. Today’s (September 2) edition of the Register reports that has now happened (“Register owner files for bankruptcy protection”, Business section).

The article explains that the revenue from Freedom’s various media operations, including the Register, is inadequate to cover operation expenses and make required payments on debt. In what has to be the best example of “spin” to appear in print in a long time the article quotes unnamed “Executives” at both Freedom and the Register as saying that “both organizations are profitable, they just aren’t making enough money to service the current debt.”

Hello? If required monthly outflow exceeds income, how can someone say a business is profitable? Talk about spin.

I can hear it now – many homeowners with huge mortgage payments that can’t be made by families anymore because one of the home’s wage earners los their job, or received a pay cut, saying “we still have good income, it is just that we can’t service our mortgage debt anymore.”

Stop the spin! Freedom, you and therefore the enterprises you own are collectively unprofitable. You have taken steps, as many in America are doing these days, to legally default on some of your debt in order to survive, at least for a while.  If your organization was profitable filing for bankruptcy protection would not have happened. That is no spin.

About Over But Not Out

A retired Orange County employee, and moderate Republican. The editor seriously does not know OBNO's identity as did not the former editor, but his point of view is obviously interesting and valued.