Star Tribune's post-bankruptcy loss: $1.8 million

The Minneapolis Star Tribune has posted a $1.8 million operating loss in its first six weeks in bankruptcy, according to court documents filed Friday.

The paper grossed $24.2 million from Jan. 15 to March 1, and spent $26 million. Management also racked up a hefty $2.2 million in reorganization costs, which are not reflected in the operating loss.

Until now, Strib has managed a profit even as its business deteriorated and it stopped paying off $480 million in debt. In 2008, for example, the operating profit was $31 million.

The danger for a bankrupt business is that no one will lend you money to cover losses, leaving only cutting to keep the doors open.

However, the Strib had squirreled away $25 million before its mid-January filing to keep operating, and the new documents shed some light on the bankruptcy move's timing. Despite the $4 million lost to operations and reorganization, the paper's cash position actually soared to $34 million as Christmastime advertising payments came in.

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