Gannett has neglected to make financial moves that would have conserved capital and ensured the company's future. It could have cut its dividend much earlier and, more importantly, staggered credit obligations so they fell due within 10 years, instead of three. "Not long ago, they could have taken their capital structure and pushed maturities so far out into the stratosphere that their debt situation isn't relevant today," says a debt expert.

Now it's too late. Because of the credit crisis, an unfortunate bunching of credit maturities and a debilitating number of credit-default swaps -- in addition to the industry's overall downturn -- Gannett as we know it will be lucky to last through June 2011. "Management has painted itself into a corner," says the expert. "They have to raise more than $400 million between now and the middle of 2011 in a market where many of their bondholders would rather they default."

About $432 million in loans will be due June 2011, uncomfortably followed by the maturity of a $280 million term loan the next month. That's a lot of coin -- $712 million -- before even addressing the $2.8 billion Gannett has due in the first half of 2012. So far, traders seem to be indifferent to an insolvency and willing to wait for better terms. Next month, after Gannett releases second-quarter results, the traditional Q&A session will likely include some of the most pointed questions ever directed at the company.

Read the whole story at The Deal.

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