The Default Option: Gannett Unlikely to Survive Through 2011

Because of the credit crisis, an unfortunate bunching of credit maturities and a debilitating number of so-called negative-basis trades featuring credit-default swaps -- all in addition to the industry's secular and cyclical downturns -- Gannett as we know it will be lucky to last through June 2011. "They painted themselves into a corner," the distressed-debt expert says of Gannett management. "They have to raise more than $400 million between now and the middle of 2011 in a market where, frankly, many of their bondholders would rather they default." [Full STORY] Sphere: Related Content