(cont'd from above)
The move to go public follows a tough couple of months for the Times. Last month the Times’ printing facility was destroyed in a fire that Metro City police officials are still investigating. The body of reporter, Eliza Hamilton, was found at the scene of the fire. Her estranged husband, Thomas Hamilton is wanted for questioning.
Hanover also confirms that creditors are also demanding that the Times pay all the money that it owes.
“As if all that was going on with the investigation wasn’t bad enough, now I have the banks breathing down my neck to pay off all the loans that we owe,” said Hanover. “I just don’t get why they all have to call in the loans simultaneously.”
Those loans include money financed from the South Metro Bank and the First National Bank of Metro City. Both banks are now demanding that Hanover make a sizeable payment on those loans.
“I took out the loans to finance the construction of the original printing facility,” said Hanover. “We may have gotten that grant from the Metro City Mayor’s office and help from outside investors, but we still had to come up with a sizable chunk of change that was not going to just fall from the sky.”
With the fire and reconstruction efforts, money is even tighter at the Metro City Times. Hanover said the Times could not begin reconstruction efforts until money had been raised to pay off old bank loans.
Dean Jameson from Jameson, Dans and Victors said that many investors he had spoken with made him feel confident in the initial public offering by the Metro City Times.
“The bottom line is that investing in newspapers is a good idea in this economy,” said Jameson. “With the price per share I believe that the Metro City Times will sell rapidly.”
The decision to go public is one that a number of other city papers have done recently. The Waterford Gazette went public three months ago for $10 a share and the Fireville Daily News went for $11 a share six months ago.
The circulation of the Gazette is 750,000 and the circulation of the Daily News is closer to 900,000. Both papers have a lower circulation than the one million people who read the Metro City Times daily, which explain the increased stock value of the Times.
“I believe in this newspaper and if taking the paper public is what it takes to let the newspaper survive then I will do it,” Hanover said.
The first initial public offering for the Metro City Times is scheduled for next Tuesday at the Metro City Stock Exchange.