Going private isn’t a form of immunity: Avista, the PE-fund that bought the Minneapolis Star-Tribune for $530 million in late 2006, has written down 75 percent of its original investment. The leverage fund only put up $100 million of its own cash, with the rest coming form financiers. A letter to the fund’s investors, excerpted by the paper, sings a familiar song: “In the past year, the newspaper industry has suffered greater than expected declines in circulation and advertising revenue, particularly in print classified advertising.” The letter also denied a NYP report saying the entity was on the brink of bankruptcy, though the firm has hired Blackstone to help it deal with its financial issues.

SEE ALSO: Star Tribune Newspaper Sold by McClatchy To PE Firm For $530 Million

Basically, the company’s losses are in range with what’s been seen elsewhere: McClatchy (NYSE: MNI) shares are down over 60 percent since the end of 2006. Journal Communications (NYSE: JRN) are down by over 50 percent. So, anyone want to step up and catch a falling knife?