Star Tribune owner writes down equity
Published reports say the owner of the Star Tribune has written down its investment in the newspaper by 75 percent.
Avista Capital Partners bought the Minneapolis-based paper last year for $530 million. The Star Tribune reports Avista's investment in the paper was $100 million, with the rest financed by debt.
The writedown means Avista's initial investment has lost three-quarters of its value. The published reports cite a letter from Avista to its investors, saying the paper's outlook remains uncertain.
The Strib's troubles reflect the brutal conditions in the newspaper industry, which has been hit hard with declines in readership and classified advertising sales.
The news comes just a few days after the Star Tribune denied published reports that it is near bankruptcy. The paper has hired Wall Street firm the Blackstone Group to help evaulate its financial situation.
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