The presses rolled as usual Thursday at the 117-year-old Oakland Tribune, which was rescued from a life-threatening $31.5 million debt to the Gannett Co. by a foundation headed by Gannett's former chairman.
"Here to Stay," proclaimed a front-page banner headline above a picture of Publisher Robert Maynard and Allen Neuharth, the former Gannett chairman who heads The Freedom Forum."Now, instead of making news, we can get back to reporting the news," Maynard said in announcing the last-minute agreement Wednesday to cheering employees in the newsroom.
Maynard had said that the Tribune would fold this week unless something could be done about the $31.5 million it owed Gannett. He had said an investor was willing to provide the newspaper with cash if Gannett would accept $2.5 million.
Gannett said it wanted to know who was providing the money. Maynard said the investor wanted to remain anonymous and that Gannett was killing the Tribune by holding out for $8 million.
In 1983, Gannett, then headed by Neuharth, loaned Maynard and his wife and deputy publisher, Nancy, $17 million to buy the newspaper from Gannett. It said the Maynards have been in default on the loan for five years, but that it wasn't pressing for payment. The note swelled to $31.5 million as interest piled up.
Negotiations that began over the weekend involving The Freedom Forum led to the agreement to retire the debt in exchange for a $2.5 million promissory note from the Tribune. Gannett also will get a $5.5 million stake in the Tribune.
The interest-free note is guaranteed by The Freedom Forum, a foundation formed by Frank E. Gannett in 1935. The journalism foundation sold its 10 percent stake in Gannett for $670 million to Gannett last month.
The newspaper was promised $5 million from the foundation, contingent, Neuharth said, on the paper reaching settlements with other creditors.