The C-ville Weekly, one of two free tabloid newspapers in Charlottesville, has an interesting story on the financial struggles of the Daily Progress and Media General.
Media General owns a good chunk of daily papers in the state, starting with the Richmond Times-Dispatch. It bought newspapers, TV stations and other things in the 1990s and beyond, then the music stopped. The money they planned to use to pay their debts wasn't there.
The debt, more than the internet, has some newspaper companies in trouble. But the debts aren't going way and the internet means the revenue stream will continue to shrink.