Who would management be and how will they manage?

The selection of senior management for the successor corporation to the Blethen Maine Group, which we refer to here as “NEWCO,” will be driven by the wishes of those investors who are putting forth the risk capital to consummate a transaction. In the case of the Blethen Maine Group, if an ESOP structure is incorporated into the sale process, the Newspaper Guild would seek a consultative role regarding those decisions.

The senior management of “NEWCO,” its President and CEO in particular, would report to a Board of Directors. The founding Board of Directors of “NEWCO” would be selected by investors. If a significant ESOP is part of the final ownership structure, the Newspaper Guild and other labor organizations with affected employees would seek consultation on the selection of the Board including possible direct or indirect representation. Candidates for the Board of Directors of “NEWCO” would be selected primarily on the basis of their professional contribution, on how their skills and contacts can help grow “NEWCO’s” business and meet the industries challenges. Over time, seats for the Board of Directors of “NEWCO” would be subject to an election process that reflects the investment stake of different investment groups.

On a day-to-day basis, the same general operating procedures and practices that govern efficient newspapers in the current media market would prevail at NEWCO. Management would retain the power to hire and fire. Unions would still collectively bargain.