Tribune Co. files for bankruptcy protection

[K1052]

Tribune Co. files for bankruptcy protection
The Chicago-based media company ? whose properties include the L.A. Times, KTLA and the Chicago Cubs ? wants to restructure payments on $12 billion in debt.
By James Rainey and Michael A. Hiltzik, Los Angeles Times Staff Writer
10:52 AM PST, December 8, 2008
The company that owns the Los Angeles Times, KTLA Channel 5 and the Chicago Tribune filed for bankruptcy protection today, seeking relief from $12 billion in debt that largely stems from last year's leveraged buyout of the media firm.

Tribune Co. directors approved the action to seek Chapter 11 protection in a meeting today, saying they want to restructure payments to banks and other creditors, following real estate magnate Sam Zell's purchase of the company last year.

The Chicago-based company had roughly $300 million cash on hand, more than enough to make a $70-million payment due today. But executives reportedly were unable to persuade lenders to undertake a broader restructuring of the debt.

Among other obligations, a $512-million principal payment related to Zell's leveraged buyout is due in June.

Money for that payment was to come from asset sales, particularly the sale of the Chicago Cubs baseball franchise. That sale, originally expected to take place earlier this year, has been delayed in part because of the credit crisis and is now expected to take place in 2009.

Some analysts had previously set the value of the Cubs at more than $1 billion.

Tribune's debt has become more burdensome over the last six months as advertising revenue at its eight daily newspapers and 23 television stations has fallen sharply. Industry projections are for further declines over the next six months to a year.

The company said it plans to file in Delaware, where it is incorporated.

http://www.latimes.com/busines...8dec09,0,5273854.story

Anyone want to buy a MLB team or tv station on very reasonable terms?

 

[Genx87]

Where is the recuse plan for the MSM and Baseball?

 

[dmcowen674]

Posted in my economy thread last night.

Isn't Obama from Chicago?

 

[palehorse]

So wait, a large company actually filed for Chapter 11 without first begging Uncle Sam for a taxpayer-sponsored bailout!?

Amazing... it looks like the proper systems still work! Imagine that...

 

[daniel49]

Can the New York Times be far behind?

 

[TallBill]

Originally posted by: dmcowen674
Posted in my economy thread last night.

Isn't Obama from Chicago?

This has less to do with the recent economy then it has to do with the fact that paper newspapers have been on the decline for the last decade with the proliferation of the internet. The Tribune has done very little to adopt their model.

 

[JS80]

MSM, one down, a few to go.

 

[Thump553]

Our major state paper, The Hartford Courant, (oldest continually published paper in the US) was bought by the Trib a few years back. The handwriting has been on the wall for quite a while-the Courant laid off 25% of its reporters and has shrunk it's page count by roughly one-third in recent months. Plus they have way dumbed down the paper-lots of graphics, white space and 30 second stories. It's pathetic what the Trib organization did to a great paper. I'd give even money odds on the Courant folding in the next few years-something that would have been unthinkable a year ago.

 

[sactoking]

Gannett, one of the largest publishers in the US (they have USA Today in their stable) just laid off 10% of their workforce last week. That was the second layoff this year and it looks like there will be a third round right after the new year.

 

[ScottMac]

We need to stimulate the Pet Bird industry, that'll bring 'em back ...

 

[sandorski]

Originally posted by: palehorse
So wait, a large company actually filed for Chapter 11 without first begging Uncle Sam for a taxpayer-sponsored bailout!?

Amazing... it looks like the proper systems still work! Imagine that...

Soon "Hero" will be used when speaking of such people.

 

[bbdub333]

The Cubs aren't part of the bankruptcy settlement

 

[TallBill]

Originally posted by: bbdub333
The Cubs aren't part of the bankruptcy settlement

Thats to bad

 

[spidey07]

Originally posted by: daniel49
Can the New York Times be far behind?

One can dream, one can dream. I think they're probably next since they've lost all credibility.

 

[fskimospy]

Originally posted by: spidey07

Originally posted by: daniel49
Can the New York Times be far behind?

One can dream, one can dream. I think they're probably next since they've lost all credibility.

Profits are down at all print newspapers due to an industry wide decline in ad and classified revenue, but the Times still banked more than $21 million last quarter.

While to raving right wing lunatics the NYT is the enemy, to the entire rest of the world it is the most respected newspaper on the North American continent, the recipient of more Pulitzer prizes than any other paper, and the newspaper of record for the United States.

It ain't going anywhere.

 

[JS80]

Originally posted by: eskimospy

Originally posted by: spidey07

Originally posted by: daniel49
Can the New York Times be far behind?

One can dream, one can dream. I think they're probably next since they've lost all credibility.

Profits are down at all print newspapers due to an industry wide decline in ad and classified revenue, but the Times still banked more than $21 million last quarter.

While to raving right wing lunatics the NYT is the enemy, to the entire rest of the world it is the most respected newspaper on the North American continent, the recipient of more Pulitzer prizes than any other paper, and the newspaper of record for the United States.

It ain't going anywhere.

fap fap circle jerk fap fap

 

[TallBill]

Originally posted by: JS80

fap fap circle jerk fap fap

I really don't like any major news publication or broadcast other then the WSJ. They just don't interest me. I enjoy internet publications much more because I can choose exactly what I want to read about.