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Summary:

Tribune, the Sam Zell-owned newspaper chain, has hired bankruptcy advisers in an attempt to stave off potential bankruptcy filing, reports N…

Tribune, the Sam Zell-owned newspaper chain, has hired bankruptcy advisers in an attempt to stave off potential bankruptcy filing, reports NYT, citing sources. It is using investment bank Lazard and the law firm Sidley Austin, to try and restructure its crippling debt and assess its options, the story says. The WSJ, which reported the news first, says Tribune could file for Chapter 11 bankruptcy protection as early as this week….

Last month, the company reported a Q3 loss of $124 million, compared with earnings of $84 million for the same period last year. Publishing advertising revenues slid 19 percent ($111 million), and as part of that, interactive revenues dropped 7 percent ($4 million). The company has about $12 billion in borrowings, and stayed ahead of the interest payments as a result of asset sales, but the economy and resulting ad decline continues to hit it hard. The company doesn’t have enough cash to pay $1 billion in interest payments this year, and also owes a $512 million debt payment in June.

The bankruptcy possibility was raised back in June by S&P analyst Emile Courtney. For all the gory details on the Tribune saga, read our dedicated Tribune section.

Update: Another story in the NYT has some more: Rating agencies say Tribune

  1. WHY IS IT INDIVIDUALS WHO HAVE HIGH CREDIT CARD DEBT, INCLUDINTG LATE PAYMENTS, HIGH INTEREST RATE, ARE PENALIZED BY BEING REPORTED TO THE CREDIT BUREAUS, MAKING THEIR LIVES EVEN MORE DIFFICULT AND STRESSFUL, WHILE MAJOR BUSINESS' GET FREE BAILOUTS, PAID BY US, THE CONSUMERS? CORRUPTION AND GREED AT THE HIGHEST, AND THE WORKING CLASS HAS TO PAY FOR IT IN EVERY POSSIBLE WAY!! THERE IS NO JUSTICE!!

  2. Because, Susan, unlike individuals, major businesses employ thousands of people. If they go under, their thousands of employees go under, along with all the small businesses that rely on supplying that big business to stay in business themselves. If I go under, nobody will lose a job. No company will go out of business. The economy is bad right now because of decisions made by the Bush administration and business. Workers are paying, but try not to put them out of work.

  3. If you think this is big news, try the views of Think!, for readers of the IHT, (http://ihtreaders.blogspot.com) which predicts the NYT going bankcrupt by the end of 2012 if not sooner unless they either come up with some game changing ideas or go public to private. And pronto.

    In fact Think! has given up on them.

    S&P and Moody's haven't issued a Chapter 11 warning but then we all know how good they are at credit ratings and default risk evaluations.

    The mess we're in?

    HOOCOODANODE???!!!!!!!!!!!

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