Could this be the LAT's future?

The Minneapolis Star Tribune has just signed off nearly 50 newsroom buyouts, part of the paper's plan to cut staff by 7 percent, and while that's not big news out here, the financial disaster that's behind the job losses could be worth paying attention to. It's not just that advertising and circulation revenue are falling so fast that the paper is now trying to avoid losing money within two years (a metro daily in the red is really bad). But even more worrisome is the company's debt, which according to Deal Journal, puts the Star Tribune at a level normally reserved for companies in distress. (The paper was bought earlier this year by Avista Capital Partners in a bargain-basement sale.)

As the money folks watch this Midwestern mess play out, it's yet one more reason for them to pull back on the $4 billion in loans and bonds Tribune Co., parent of the LAT, still needs to sell in order to complete its sale to Sam Zell. "As easy as it is to get credit investors to part with cash these days," writes Deal Journal's Dana Cimilluca, "there’s an increasing number of companies with disappointing results. And in those cases, the credit markets aren’t quite so easy." By the way, the Star Tribune now has 333 newroom staffers and, like the Times, it's looking to reorganize things. That means more focus on city and suburban coverage and the scaling back or elimination of beats like architecture and aging.