Oregon Media Insiders

As Newport Television LLC struggles to digest the Clear Channel TV stations it swallowed last year, rumors are swirling about serious cuts throughout its operations, including KMTR in Eugene. I've heard the ax is going to fall at many if not all of the group's newsrooms and production staffs starting today, possibly cutting up to 25%.

Newport is having difficulty getting people to buy its bonds, currently rated CCC-plus (that's seven steps below investment grade). While the bonds aren't directly tied to the Clear Channel deal, all the legal wrangling the company's facing is forcing it to pay upwards of 15.5% return on its unsecured debt.

That extra interest money has to come from somewhere. Guess where? Or so it's being rumored. Eugenians, keep us posted. I always love to be wrong about this stuff.