Heckuva Job, Sammy: Tribune Goes Bankrupt

Sam Zell was bad news the minute he walked in the door. Moments ago, the Tribune Company filed for BK.

Chicago Tribune parent Tribune Co. filed for Chapter 11 bankruptcy protection today in Delaware so it can restructure its debt.

The Chicago Cubs and Wrigley Field, which Tribune Co. has on the auction block, are not part of the filing. The company said it has sufficient cash to continue to operate its media businesses, including publishing its newspapers and running its television stations and interactive properties, without interruption.

Chicago-based Tribune Co. had more than enough cash on hand to make a payment of $70 million due today on money borrowed before Zell's deal, but it was unable to convince lenders to embrace a broader restructuring of its debt.

Much of its debt was incurred last year when real estate magnate Sam Zell took the company private last December. It has re-paid approximately $1 billion of its senior credit facility since then. But the situation at Tribune Co., which has suffered from industry-wide declines in advertising revenue that have eroded its cash flow since the deal was done, is emblematic of the squeeze felt throughout the media business overall, and newspaper companies in particular.

Comments

[cage free brown]

Who would have ever guessed how much SUCK that guy would bring to the L.A. Times? not me!

I won't let my parakeets shit on the L.A.Times.

[SansS]

The background text leaves out the point that the privatization was pulled off on the back of the pension fund. The employees are holding the bag that Zell controls. And its likely a similar model at the LATimes.

I am amazed at how stupidly business is run/done in the post-Reagan era. There's money to be made by sticking to values and hard work.

The conservative model has all been money centric: "let's make money work for us even when it's not ours."

Ya gotta consider Karma and love it too.