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L.A. Times parent company files bankruptcy reorganization
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| tjpatel |
L.A. Times parent company files bankruptcy reorganization
December 8th, 2008, 11:29 am · Post a Comment · posted by Mary Ann Milbourn
The Tribune Co., owner of the Los Angeles Times and KTLA/5 in Los Angeles, announced today it filed Chapter 11 bankruptcy reorganization.
A press release said the company’s media businesses will continue to operate during the restructuring and that the company has sufficient cash to do so.
Sam Zell, Tribune chairman chief executive, said the company had attempted to restructure but got hit with a triple whammy of a decline in revenue, a tough economy and the credit crisis that “makes it extremely difficult to support our debt.”
| quote: | Tribune Company to Voluntarily Restructure Debt Under Chapter 11
Publishing, Interactive and Broadcasting Businesses to Continue Operations
Chicago Cubs and Wrigley Field Not Part of Chapter 11 Filing; Monetization Efforts to Continue
CHICAGO, December 8, 2008 -- Tribune Company today announced that it is voluntarily restructuring its debt obligations under the protection of Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The company will continue to operate its media businesses during the restructuring, including publishing its newspapers and running its television stations and interactive properties without interruption, and has sufficient cash to do so.
The Chicago Cubs franchise, including Wrigley Field, is not included in the Chapter 11 filing. Efforts to monetize the Cubs and its related assets will continue.
"Over the last year, we have made significant progress internally on transitioning Tribune into an entrepreneurial company that pursues innovation and stronger ways of serving our customers," said Sam Zell, chairman and CEO of Tribune. "Unfortunately, at the same time, factors beyond our control have created a perfect storm -- a precipitous decline in revenue and a tough economy coupled with a credit crisis that makes it extremely difficult to support our debt.
"We believe that this restructuring will bring the level of our debt in line with current economic realities, and will take pressure off our operations, so we can continue to work toward our vision of creating a sustainable, cutting-edge media company that is valued by our readers, viewers, and advertisers, and plays a vital role in the communities we serve. This restructuring focuses on our debt, not on our operations."
The company filed today for Court approval of various, customary First-Day Motions, including: maintaining employee payroll and health benefits; the fulfillment of certain pre-filing obligations; the continuation of the Tribune’s cash management system; the ability to honor all customer programs. The company anticipates its First-Day Motions will be approved in the next few days.
While the company has sufficient cash to continue operations, to supplement its cash availability in the event of even more significant declines in its operating results, the company has negotiated an agreement with Barclays to maintain post-filing its existing securitization facility. Barclays has also agreed to provide a letter of credit facility. The company expects to submit these agreements to the Court for approval as part of its First Day Motions.
Since going private last year, Tribune has re-paid approximately $1 billion of its senior credit facility. During this time, the company has been rewriting the business model for its media assets with the goal of building a sustainable, innovative, competitive company that provides relevant products for its customers and communities.
For further information on Tribune Company’s Chapter 11 filing, please visit Tribune.com or http://chapter11.epiqsystems.com/tribune, or call 888-287-7568. The company will provide updates regarding ongoing operations plans as they become available. |
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| DjWoody |
| Whoa!!! That's kinda good news for me. I work for the LA Time's main competitor and rumors were flying around that the LA Times was gonna buy us out. |
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| mattW |
"The company that owns the Los Angeles Times, KTLA Channel 5 and the Chicago Tribune filed for bankruptcy protection today, seeking relief from $12 billion in debt that largely stems from last year's leveraged buyout of the media firm."
http://www.latimes.com/business/la-...0,5273854.story
Ever since The Tribune Company bought the Times, the quality of the paper has gone downhill. It is sad, considering what a good paper it used to be. Every section has been cut.
I suppose the downturn in revenue started when classified ads became mostly irrelevant.
There is still no comparison between reading news on a monitor compared to reading a newspaper. Progress lol. |
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| gehzumteufel |
| quote: | Originally posted by mattW
There is still no comparison between reading news on a monitor compared to reading a newspaper. Progress lol. |
This is utter bull. I would much rather have a tablet like the kindle over a massive oversized newspaper that requires me to constantly flip pages, waste paper, etc. |
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| mattW |
| quote: | Originally posted by gehzumteufel
This is utter bull. |
lol - I knew I should have checked with you first. |
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| gehzumteufel |
| quote: | Originally posted by mattW
lol - I knew I should have checked with you first. |
Yeah because I am always right.:rolleyes:
It isn't even that. It is called comfort and nostalgia. There is no difference in reading a tablet with an epaper display and reading a newspaper. They are basically the same. Except for the fact that you touch one and the other you don't. |
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| mattW |
| quote: | Originally posted by gehzumteufel
Yeah because I am always right.:rolleyes: |
Thanks. I salute you. |
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| gehzumteufel |
| quote: | Originally posted by mattW
Thanks. I salute you. |
did you not notice I put 
That is the TA sarcasm. |
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| S Nate Faulkner |
| Wow, I just installed a bunch of servers and a cheap SAN at the Tribune in West Covina not 3 hours ago! Seems like they got enuf money for IT toys. |
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| stefanoc |
| quote: | Originally posted by S Nate Faulkner
Wow, I just installed a bunch of servers and a cheap SAN at the Tribune in West Covina not 3 hours ago! Seems like they got enuf money for IT toys. |
if they paid cash then yes. if not then they might be protected under chapter 11. |
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| S Nate Faulkner |
| quote: | Originally posted by stefanoc
if they paid cash then yes. if not then they might be protected under chapter 11. |
I get salary from my company, who is a partner with, and gets paid by Dell. So I'm not in the loop if Tribune actually paid Dell. And I don't really care too much. |
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| DjWoody |
| IT Departments in big newspapers like the LA Times budget all their equipment purchases/leases years in advanced. We do that all the time. So the money for those servers might actually been just sitting down for a long long time. Once something has been budgeted it's really hard to allocate those funds to something else. |
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