Tribune has filed for Chapter 11 protection this morning, in bankruptcy court in Wilmington, Delaware. This comes after the news yesterday that the debt-laden newspaper company and owner of LA Times and Chicago Tribune had hired investment bank Lazard and the law firm Sidley Austin to try and help in this process.
From the company release about the filing:
– Total Debt: $12,972,541,148.00
– The company will continue to operate its media businesses during the restructuring, including publishing its newspapers and running its television stations and interactive properties without interruption, and has sufficient cash to do so, it said.
– The Chicago Cubs franchise, including Wrigley Field, is not included in the Ch 11 filing. Efforts to “monetize the Cubs and its related assets will continue,” the company said.
– The company anticipates its First-Day Motions will be approved in the next few days.
– The company has negotiated an agreement with Barclays to maintain post-filing its existing securitization facility. Barclays has also agreed to provide a letter of credit facility.
– From the filing: the company has hired Edelman as the PR firm to help in its public relations during this bankruptcy process.
Sam Zell has the requisite words: “Over the last year, we have made significant progress internally on transitioning Tribune into an entrepreneurial company that pursues innovation and stronger ways of serving our customers. Unfortunately, at the same time, factors beyond our control have created a perfect storm — a precipitous decline in revenue and a tough economy coupled with a credit crisis that makes it extremely difficult to support our debt.”
Photo Credit: scmikeburton
The full filing is after the jump, or for a downloadable copy, click here.