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Associated Press, Published January 16 2009

Star Tribune files for bankruptcy

MINNEAPOLIS – The Star Tribune says it has filed for Chapter 11 bankruptcy. The Minneapolis newspaper posted the announcement on its Web site.

The filing comes less than two years after a private equity group, Avista Capital Partners, bought the paper for

$530 million.

In its filing, the Star Tribune says it listed assets of $493.2 million and liabilities of $661.1 million. The company says it hopes to use bankruptcy to restructure its debt and lower its labor costs.

The Star Tribune has seen a sharp drop in print advertising, as have many newspapers.