Another one bites the dust!  Lee Enterprises, publisher of 48 daily newspapers, filed for Chapter 11  bankruptcy protection to refinance almost $1 billion in debt.  This will not be the last bankruptcy filing for the newspaper field, perhaps the last for 2011, and that’s a good thing.

The plan is for the company to repay its creditors in full, but will require the extension of key payments of maturing debt due in April into 2015-2017, though at higher interest rates.

The newspaper business is not the high margin field it used to be.  Coupled with the debt incurred after a major raft of acquisitions and consolidations over the past several years, the field is awash in red ink.  In the case of Lee it was their acquisition of the Pulitzer chain back in 2005.

Recently, Warren Buffett bought The Omaha World Herald, it’s other newspapers in what is likely a ‘sugar daddy’ deal.  By that I mean it was for personal reasons, not just as an investment.  Nice to have a lot of disposable billions like Warren has, and that is what the newspaper business needs.  Deep pockets, and the desire to make a difference with a big voice in the local community.  This was really how the newspaper business got started, and going back to our roots could be what we really need at this time in our history.