Loan defaults in McClatchy's future?

http://www.editorandpublisher.com/eandp/news/article_display.jsp?vnu_content_id=1003939434

Probably the biggest obstacle for most of the industry surviving this downturn is the excessive debt a lot of operations are burdened with.

It doesn't get as much attention as the home loan crisis or the the excessive credit card debt most households have, but there was a lot of speculation and excessive indebtedness in commercial real estate and in the media business over the last few years. Quite a few media chains changed hands at very high prices, apparently on the theory that newspapers were a license to print money -- a theory that had a lot of evidence going for it until very recently, too.

But, like housing, there have been signs for a long time that the fundamentals of the industry were unsound. Things changed fast.