MediaNews makes deal on debt

The New York Times reports that MediaNews Group has made a deal with lenders to delay a principal payment on its debt. From the NYT:

In its forebearance agreement with its banks, led by Bank of America, MediaNews will forgo payments while it attempts to reorganize its capital structure, the people briefed on the matter said. The move will also help preserve the publisher’s cash.

MediaNews has worked out a similar agreement with Hearst, which owns a big stake in the publisher’s equity and a majority position in its bonds. (Hearst also owns the hugely unprofitable San Francisco Chronicle, which it has threatened to sell or shut down if it cannot cut labor costs quickly.)

Note: I'd previously linked to a Wall Street Journal story here, but decided the Times story had more relevant information.