Star Tribune files reorganization plan
The Star Tribune Co. says it filed a reorganization plan with U.S. Bankruptcy court, with the goal of emerging from Chapter 11 protection this autumn.
The newspaper says it filed the paperwork Thursday. Since the Star Tribune entered bankruptcy in January, it has reached agreement with six of 10 bargaining units, representing 94 percent of unionized employees.
The Star Tribune says the agreements reached cost savings the company needs. The newspaper wanted to cut labor costs by $20 million a year.
Publisher and chairman Chris Harte says in a statement he's confident the newspaper will emerge in better shape and ready for the "intense competition that lies ahead in a rapidly evolving news and information industry."
He says the plan outlines how creditors' claims will be resolved. In a letter to employees, he thanked them for their hard work and dedication, saying "the end is in sight."
(Copyright 2009 by The Associated Press. All Rights Reserved.)
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