“Most Dangerous Bailout of All” Avoidedby Tim Manni
On February 3 we wrote a post that reported on the possible bailout of two Philadelphia newspapers using state funds. We questioned that if the bailout was approved, could it become “the most dangerous bailout of all?” Newspapers — which exist as a fair and honest critic of the government — could quickly turn into a mouthpiece for the government.
That dilemma was avoided yesterday when the company which owns the papers filed for Chapter 11:
The financial burden from an advertising downturn, rising costs for newsprint, and the migration of readers to the Internet caused Philadelphia Newspapers to fall out of compliance with its loan agreements last year.
According to the Inquirer, the bankruptcy filing will not “interrupt” daily operations.