The McClatchy Company has announced that the agreement to sell 10 acres of land adjacent to The Miami Herald has been terminated. Under the terms of the existing purchase agreement, as amended on January 19, 2010, the buyer had until Jan. 31, 2011, to close the transaction.
Under the terms of an agreement with the developer, McClatchy is now entitled to receive a $7 million termination fee. McClatchy previously received approximately $16.5 million in nonrefundable deposits, which it used to repay debt.
Pat Talamantes, McClatchy’s vice president and CFO, says, “While we would have preferred to close the transaction on the terms under the purchase agreement, we retain a valuable parcel of 10 acres in an attractive area and believe we will have numerous options to monetize this asset.”