Update, Feb. 2: The MediaNews bankruptcy marches ahead.

So far, proceedings in Delaware bankruptcy court seem to agree with the idea that Chapter 11 proceedings will be limited to MNG’s holding company, Affiliated Media Inc., and will not affect employees or union contracts.

David R. Hock of Cohen, Weiss and Simon represented The Newspaper Guild/ Communications Workers of America locals at the first day hearing on Jan. 26. It appears the pre-packaged bankruptcy will come to a swift conclusion, heading for confirmation without objection on March 4.

The U.S. Trustee is not inclined to convene a creditors’ committee. Local counsel of record will keep us updated on any court filings.

What the bankruptcy documents have shown so far:

• Hearst loses its $300-$400 million investment in MNG, but will get warrants that someday could be converted to stock.
• MediaNews President Jody Lodovic and Chairman and CEO Dean Singleton will continue to control the company post-bankruptcy.
• Under the reorganization plan, Singleton gets $634,000 in annual salary, an annual bonus of up to $500,000, and another $360,000 in salary from the Denver Post Corp. (Read AP’s story here).
• Lodovic gets $1 million in annual salary and an annual bonus of up to $500,000. He already got $500,000 in bonuses for leading the reorganization, and stands to get an extra $250,000 bonus when the bankruptcy is official.

Guild attorneys will continue to monitor the proceedings, including scouring all local agreements and pension plans for any mention of Affiliated Media.

The full text of the bankruptcy disclosure statement can be read here.

Consolidation with the Chronicle?

At this point, a main concern for all of us should be whether this bankruptcy will pave the way for even more consolidation — including a potential merger of the Bay Area News Group with the San Francisco Chronicle.

Singleton has been open about his desire to pursue more aggressive consolidation post-bankruptcy, telling the Washington Post that to imagine where such mergers might occur, “You can look at the map.”

As blogger Alan Mutter notes, “The long-running losses at the Chronicle, plus the MediaNews bankruptcy, may be sufficient to persuade regulators that an antitrust waiver is necessary to sustain journalism in Northern California.”  (Read the rest of his piece here.)
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Jan. 22: After months of largely theoretical existence, the nonprofit Bay Area News Project leapt toward reality this week by announcing the hiring of its top leaders: CEO Lisa Frazier and Editor-in-Chief Jonathan Weber.

Following the exit of founder partner KQED from the project, the group also said it will  supply stories to the new Bay Area sections of the New York Times.

Frazier, a partner at consulting firm McKinsey & Co., began helping structure the Bay Area News Project last spring, after San Francisco financier Warren Hellman pledged a $5 million seed grant.

Weber is perhaps best known in the Bay Area as the founder of The Industry Standard, a dot-com era magazine famous for its generous salaries and extravagant rooftop parties.

Read more about them here.

Update, Jan. 21: Many of us worried that the New Year would ring in a new round of staff cuts at the Bay Area News Group-East Bay. But several weeks into 2009, we have yet to see a layoff in our bargaining unit.

Lately, we’ve been hearing from credible sources that newsroom layoffs aren’t coming any time soon. Our best reports say our managers have found other ways to trim the budgets, including a plan to shift deadlines and change workflow on the copy desk. (There’s a meeting on that one later this afternoon). We’ll send specifics as we get them; as always please share any details you hear or concerns you may have.

No one likes to see cuts that change deadlines or make the newspaper smaller, and there’s still a chance that more of our colleagues outside the newsroom will lose their jobs.

Still, we’re relieved to hear that our company has been looking beyond newsroom layoffs to balance the budget, at least for the immediate future. Saving jobs is a top priority for guild leaders, and everything we’ve heard tells us that the rest of you agree.

So take a deep breath. In a volatile business climate, there are no guarantees. But if you’ve been yearning to settle in and focus on doing your job, maybe even tackle a special project, now seems like a good time.

 After the jump:  A new contract in Long Beach, Broun awards deadline nears; plus bargaining road-show, big-picture stuff and depressing industry news (as if you needed any more)…

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Financial turmoil in the media industry could open the door for alternative ownership plans designed to protect journalism’s public mission, a panel of experts said Sunday.

“The major reason to get involved is increasing the level of voice and power that union members can have in terms of these restructurings,” said Chris Mackin of Ownership Associates, who has worked on various projects for The Newspaper Guild for the past three  years. “It’s an opportunity to change how business is done.”

Mackin’s remarks were part of a panel on alternative ownership at this weekend’s “Future of the Media Industry” conference in Baltimore. The event brought together leaders from the Newspaper Guild, The National Association of Broadcast Employees and Technicians, and the Printing, Publishing and Media Workers Sector, all sectors of the Communications Workers of America.

Click here to read more about alternative ownership, including union-led efforts to protect local journalism in Maine…