Newspaper companies are in trouble, in many cases in bankruptcy. But through the power of bankruptcy court and Chapter 11, four of the biggest of these downtrodden companies have shed some 75% of their debt through restructuring, according to Portfolio.com

The online business site compiles reports stating MediaNews Group, owner of The Denver Post and San Jose Mercury News; The Star-Tribune of Minneapolis; Morris Publishing; and the Journal Register Company, have eliminated the debt through bankruptcy measures.

“How did they do it? In most cases, lenders took the classic bankruptcy gamble. They converted most of their debt into equity in the new company that emerges from Chapter 11, in the hopes that it will be sold for a good profit at some point down the road,” Portfolio.com reported. “Sure, it's risky, but it's better than a guaranteed zero recovery in the event of a liquidation.”

The story later stated: “It's only halftime in the newspaper bankruptcy game. Four more cases are pending, including the giant Tribune Co. filing, in which the company is seeking to eliminate $13 billion worth of debt.”

The good news: At least the newspaper outfits are still in business, albeit much smaller, giving what remains the best coverage in most cases of daily news.