Michael
Dec 8th 2008, 05:45 PM
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.
Source (http://www.chicagobreakingnews.com/2008/12/tribune-files-for-bankruptcy.html)
The Tribune owns the Chicago Tribune, LA Times, Baltimore Sun, Orlando Sentinel, Hartford Courant, plus about 23 tv stations, not to mention the Chicago Cubs and (fabled) Wrigley Field (amongst other assets).
What strikes me as amazing is that this news article doesn't even mention that the Tribune Company paid $8 billion for the Times Mirror in 2000 - a purchase at dot-com share inflated prices. In other words, ailing newspaper corporation paid a ludicrious amount of money to buy another ailing newspaper corporation just 8 years ago. That deal was the kiss of death for the Tribune Company. But the newspaper reports never mention this. Instead, they do their best to pretend that Tribune is just a 'casualty' of the present recessionary market. No word on the insanity of wasting billions buying 'dead-wood' publications in the 21st century.
This company deserves Chapter 7, not Chapter 11. There is nothing worth preserving here. These assets ought to be liquidated so that real business interests can put this capital to good use. Tribune Company just sucks the life out of capital. It is an inefficient application of capital and ought to be ended.
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.
Source (http://www.chicagobreakingnews.com/2008/12/tribune-files-for-bankruptcy.html)
The Tribune owns the Chicago Tribune, LA Times, Baltimore Sun, Orlando Sentinel, Hartford Courant, plus about 23 tv stations, not to mention the Chicago Cubs and (fabled) Wrigley Field (amongst other assets).
What strikes me as amazing is that this news article doesn't even mention that the Tribune Company paid $8 billion for the Times Mirror in 2000 - a purchase at dot-com share inflated prices. In other words, ailing newspaper corporation paid a ludicrious amount of money to buy another ailing newspaper corporation just 8 years ago. That deal was the kiss of death for the Tribune Company. But the newspaper reports never mention this. Instead, they do their best to pretend that Tribune is just a 'casualty' of the present recessionary market. No word on the insanity of wasting billions buying 'dead-wood' publications in the 21st century.
This company deserves Chapter 7, not Chapter 11. There is nothing worth preserving here. These assets ought to be liquidated so that real business interests can put this capital to good use. Tribune Company just sucks the life out of capital. It is an inefficient application of capital and ought to be ended.