Sun-Times Media Group Files For Bankruptcy

DON BABWIN

CHICAGO (AP) — The owner of the Chicago Sun-Times, a storied newspaper that once boasted legendary newsmen like Mike Royko, followed its rival into bankruptcy Tuesday — raising questions about whether both can survive in a brutal time for two-newspaper towns.

The filing was widely seen as a step toward shutting down a feisty paper known for uncovering city scandals that once went as far as to secretly operate a bar to expose crooked city inspectors.

"We'd be surprised if they are publishing a print daily newspaper by the end of 2010," said Mike Simonton, a bond analyst at Fitch Ratings. "They've been on the clock for over a year now in terms of burning cash and not having really a viable revenue and cost structure to survive in this environment."

Sun-Times Media Group Inc., which also owns dozens of suburban newspapers, filed for Chapter 11 protection in a Delaware court — the fifth newspaper publisher to seek protection from creditors in recent months. The company listed $479 million in assets and $801 million in debt. The largest unsecured creditors are newsprint vendors; three are owed more than $1 million each.