Highly-leveraged media companies may face problems

New York Post reports that the financial crisis could spell trouble for media companies with a lot of debt on their balance sheets. Radio and TV, who rely heavily on advertising, may struggle to pay their debts as economic conditions continue to worsen.
Companies looking to refinance existing debt will also face an uphill battle.
According to Harold Vogel, an independent media analyst, it will cost companies much more to borrow money than it did just one year ago. Vogel cautions that "some companies are going to have significant problems."
Companies including Tribune Co., Univision Communications and Clear Channel Communications "loaded up on debt late in the leveraged buyout boom." As of August, Tribune Co. is carrying more than $12.5 billion in debt, while Univision's debt exceeds $10 billion. Clear Channel has about $8 billion of debt.
Bishop Cheen, an analyst with Wachovia Securities, said investors are especially concerned about middle-to-smaller-market radio, television and publishing companies. Sources say radio is particularly vulnerable.
According to Cheen, larger media players including Time Warner, Disney and News Corp, that are not as highly leveraged, are "better positioned."
For more click here.