Honey, I'm Shrinking the Tribune Papers

Financing billions in debt becomes too onerous in down economy

(NEWSER) - The Tribune Company filed today for Chapter 11 bankruptcy protection, due to mounting debt and an inability to pay interest in the floundering economy, the Wall Street Journal reports. Tribune’s profits declined 83% in the third quarter, making it difficult to finance $12 billion in debt. The company has employed lawyers and financial advisers expert in assisting newspapers in trouble. More»

(NEWSER) - The bankrupt Tribune Company could emerge from protection with its top creditors—and not chairman Sam Zell—in charge, the Chicago Tribune reports. Zell exerts control based on $90 million he spent to secure the option of buying 40% of the company for $500 million, and a $250 million loan. Those numbers pale in comparison to the $8.6 billion Tribune owes lenders with first dibs on assets. More»

Saddled with debt, media company looks at Chapter 11

(NEWSER) - The Tribune Co. has hired a financial adviser to help it file for bankruptcy as early as this week, the Wall Street Journal reports. Facing $12 billion in debt and shrinking profits, the owner of the Chicago Cubs and several newspapers has also brought in legal counsel to guide it through bankruptcy court. The Tribune's new adviser, Lazard Ltd., is savvy at debt restructuring and has helped other newspaper companies. More»

What he's done to, and says about, Tribune Co. shows fundamental misunderstanding

(NEWSER) - Sam Zell may or may not turn the Tribune Company around, but his ownership has crippled “real newsgathering,” Peter Osnos writes in the Daily Beast. “If Tribune goes down, he will still be very rich,” Osnos continues, “but he will have presided over the evisceration of some of our best newspapers.” While Zell understands newspapers must make money, he ignores the commodity they sell: the news. More»

Ann Marie Lipinski ends 7-year run in job 'not the fit it once was'

(AP) - Chicago Tribune editor Ann Marie Lipinski handed in her resignation today after 7 years in the top post at the Tribune Company's flagship paper. Lipinski's departure comes a week after the 161-year-old newspaper told its staff it would eliminate about 80 newsroom jobs amid a broad effort to cut costs as advertising and circulation revenues decline at its newspapers nationwide. More»