Chicago publishing house Tribune files for bankruptcy
Tribune, one of the largest newspaper publishers in the US, has filed for bankruptcy. The media group, which includes newspapers such as the Los Angeles Times and the Chicago Tribune, filed for bankruptcy protection.
Tribune, one of the largest newspaper publishers in the US, has filed for bankruptcy. The media group, which includes newspapers such as the Los Angeles Times and the Chicago Tribune, filed for bankruptcy protection.
A rapid slump in revenue and the company's debt burden had made this step necessary, the Group announced on Monday. The period of creditor protection is to be used for far-reaching restructuring.
"The company will continue its media operations under creditor protection, publish newspapers and operate its television stations and Internet media without interruption," said the statement from the group, which owns nine newspapers and more than 20 TV stations.
Protection from creditors under Chapter 11 of the US Bankruptcy Code will allow the company to continue operating under its current management while reorganizing its business. Tribune owner Sam Zell announced that the restructuring would focus primarily on the debt burden of around 13 billion dollars.
The real estate mogul Zell acquired the publishing group last year, but then saddled the company with the eight billion dollar loan for the purchase as debt, according to US media reports. He himself only raised around 315 million dollars for the deal, the Washington Post reported.
The Tribune Group also includes the Chicago Cubs baseball club, for which a buyer is now being sought. Tribune is the second-largest newspaper publisher in the US in terms of revenue and the third-largest in terms of circulation.
A rapid slump in revenue and the company's debt burden had made this step necessary, the Group announced on Monday. The period of creditor protection is to be used for far-reaching restructuring.
"The company will continue its media operations under creditor protection, publish newspapers and operate its television stations and Internet media without interruption," said the statement from the group, which owns nine newspapers and more than 20 TV stations.
Protection from creditors under Chapter 11 of the US Bankruptcy Code will allow the company to continue operating under its current management while reorganizing its business. Tribune owner Sam Zell announced that the restructuring would focus primarily on the debt burden of around 13 billion dollars.
The real estate mogul Zell acquired the publishing group last year, but then saddled the company with the eight billion dollar loan for the purchase as debt, according to US media reports. He himself only raised around 315 million dollars for the deal, the Washington Post reported.
The Tribune Group also includes the Chicago Cubs baseball club, for which a buyer is now being sought. Tribune is the second-largest newspaper publisher in the US in terms of revenue and the third-largest in terms of circulation.
