DFM bloodletting continues

Imagine If Gordon Gekko Bought News Empires

 

Drive it until the wheels fall off, walk away and take the tax write-off.

 

They're playing a shell game, but another hedge fund has caught on and is suing.

It sounds to me like the bust-out is almost complete and the house of cards collapses soon.

In court filing, Hedge fund Alden admits diverting hundreds of millions from newspaper chain

The court documents were in response to a Delaware lawsuit filed against Digital First’s corporate entity — called MNG Enterprises — by another hedge fund, Solus Alternative Asset Management, which owns a 24 percent minority stake in the newspapers.

Solus claims that Alden/DFM suddenly stopped providing financial statements and other information it says it has a right to as a fellow shareholder. It also alleges collusion between Alden and the news chain’s management to divert millions into investments unrelated to media or newspapers. While Alden admitted the investments took place, it denied the collusion, without citing evidence or explanation.

. . .

Other admissions in the documents confirmed findings that DFM workers have known or suspected:

• Twenty Lake Holdings, which has been positioned as an independent firm that sells newspaper buildings and land across the U.S., is in fact an Alden affiliate.
• Alden took part in an insider “sale/leaseback” in which Twenty Lake bought a property from a DFM paper — possibly from the Denver Post — and then leased it back to the newspaper.

 

The news business has adopted the same business plan as the Medallin Cartel.

 

I was thinking Tony Soprano with Davey Scatino’s store, but we are on a wavelength.

 

Alden may not be public, but does the SEC have any oversight here?

 

I guess what surprises me is that whoever is owed the debt has to know it won't be repaid. Its almost like the banks giving out home loans like lolly pops then off-loading the mortgage.

 

You have to be fucking kidding me. That is sad. I had to squint at that photo for a second and then I recognized Citizens Bank Park. Maybe someone had a hankering for a cheesesteak?

This is ridiculous. The ones still at the Post deserve better.

 

That’s absolutely awful.

 

Posted that in the baseball thread. Beyond embarrassing.