Nyhedsavisen debt at least €7 million

Until now 160 creditors are known to curator Peter Krarup who is responsible for the financial dealings after the bankruptcy of Danish free daily Nyhedsavisen. Total debts are DKK 53m (€7m). Krarup thinks the number of creditors and the total debt will increase.

Claims of employees will be paid first, meaning that other creditors don’t have too much chances of getting money back. Krarup added:

Creditors who have received money close to bankruptcy in September, may be forced to pay the money back, so the money can be distributed more evenly among creditors. Shareholders injected DKK 38 million to the newspaper in August. Most was used to pay salaries, but some also was used to pay debts.

It will not be before 2010 until the Nyhedsavisen saga will be completed, “a period of one to two years is not abnormally long time for a bankruptcy of this size” according to Krarup. It is also very likely that there will be lawsuits, which can delay the process even further. (Media Watch)

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