Debt may force Oakland Tribune out of business

August 09, 1991|By Los Angeles Times

Oakland Tribune Publisher Robert C. Maynard bitterly accused media giant Gannett Co. yesterday of "killing" his troubled daily newspaper and said that it would have to close Wednesday if Gannett did not change its position on a debt repayment.

Mr. Maynard said that an unidentified investor had agreed to pump desperately needed capital into the paper, which has been on the brink of bankruptcy for months despite extensive staff reductions and pay cuts it negotiated with its unions.

But the deal required Gannett, which sold the paper to Mr. Maynard in 1983, to accept $2.5 million as full repayment for the $31.5 million it is owed by the Tribune.

Gannett said in a statement that it had "never received a bona fide offer from any investor," and that Mr. Maynard had refused to provide details of the repayment offer.

The company reiterated its commitment not to take any action that would put the Tribune into bankruptcy.

The 117-year-old paper employs about 600 people.

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.