According to a recent Standard and Poor's newsletter, Philadelphia Media Holdings, LLC -- the company that owns The Philadelphia Inquirer and the Philadelphia Daily News and prints The Daily Pennsylvanian - has lately been experiencing financial difficulties.
The newsletter states that lenders blocked an interest payment on June 1 because the company did not have the debt-to-cash-flow ratio stipulated by the lenders.
Jay Devine, a spokesman for Philadelphia Media Holdings, declined to comment on the specifics of the company's finances.
However, he wrote in an e-mail that the company is "financially sound."
He added that Philadelphia Media Holdings "continues its dedication to outstanding journalism both in print and online."
Philadelphia Media Holdings - a privately held company run by Brian Tierney and his partners -- bought the Inquirer and the Daily News from the McClatchy Company two years ago for $515 million. $150 million of that was put down as equity, and they borrowed the rest.
Recently, Philadelphia Media Holdings has been taking measures to reduce expenses.
The company is looking to consolidate some of the departments in The Inquirer and the Daily News - most likely those of copy and photography - in hopes of saving money.
Henry Holcomb, a business reporter at The Inquirer and president of the newspaper's largest union, the Newspaper Guild of Greater Philadelphia, said that these consolidation plans have been on the table for a while.
However, he added that it is possible that new efforts are beginning now because of the country's economy.
Joe DiStefano, who has worked at The Inquirer for 20 years, said that Philadelphia Media Holdings has also expressed interest in selling The Inquirer's building in the near future.
Reporters at The Inquirer are also not too concerned with the company's economic situation.
"People [at The Inquirer] aren't worse off today than they were in other points of economic downturn," said DiStefano.
Holcomb agreed. "The newspaper is still making money and providing a service to our readers," he said.
He added that Holcomb blocking loan payments is not an unusual move for lenders.
"For the most part, we're focused on doing our jobs," he said.
