Payment in kind – this is the new deception to hide the financial problems. Morris publishing which owns a number of newspapers (and used to be part of the same company that runs MCC) filed for reorganiztion today. The lenders agreed to take back “new” debt paying 10-15% interest, but down in the fine print it says the interest will be “payment in kind”. What this means is that Morris won’t be paying 10-15% cash – they’ll issue 10-15% more of the debt. The cancer continues to grow, the problems are not solved, but the banks are able to say “See, it’s not a non-performing loan now – we’re getting paid more promises to pay money in the future” plus be able to report that new debt as profits…..
Stop the insanity.
