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November 22, 2008 8:12:06 CST

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Zell's Tribune Co. Heads Toward Default on Loans

Posted Jun 19, 08 5:43 PM CDT in US,  Business 

(Newser) – As the newspaper industry continues its accelerating skid into the red, even billionaire Sam Zell's Tribune Company is on track to default on its massive loans as soon as the end of the year, an analyst predicts. The parent of the Chicago Tribune and Los Angeles Times is far from alone. Bloomberg takes a look at the industry as it struggles to overcome historic lows in advertising revenue.

Like other highly leveraged newspaper companies, Tribune Co. is trying to cut costs and sell assets—Zell is unloading Newsday for $632 million—but it might not be enough to meet the terms of its loans. "It's inevitable that one or more of the many highly leveraged companies in this industry will get into trouble,'' said one analyst. "Whether that translates into bankruptcy, only time will tell."

Source Bloomberg

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The coin slot on a Chicago Tribune newspaper box in seen in Chicago, in this 2007 file photo.   (AP Photo/Charles Rex Arbogast, file)
Chicago billionaire Sam Zell listens to his introduction before addressing the Inland Press Association's annual meeting in Chicago, Monday, Oct. 22, 2007.   (AP Photo/Charles Rex Arbogast)
Real estate billionaire Sam Zell listens to a question on his purchase of the Tribune Company in Chicago, Thursday, Dec. 20, 2007.   (AP Photo/Charles Rex Arbogast)
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