Bankrupt: Tribune down…
Under “mountains of debt and falling ad revenue” the Tribune Company, the American owner of The Los Angeles Times and The Chicago Tribune, filed for bankruptcy protection in a U.S. federal court, reported the New York Times.
The company — along with its once-venerable newspapers — was bought last year by real estate investor Samuel Zell. The bankruptcy filing (reproduced here) notes the company has nearly $13 billion in debt and just $7.6 billion in assets; the Times noted that “most of that debt was taken on when Mr. Zell acquired the company — a deal he struck using mostly borrowed money.”
Noted the Times, “It is only the latest — and biggest — sign of duress for the newspaper industry yet. Several newspaper companies have struggled to cope with declining revenues and mounting debt woes … It is unclear what Tribune’s filing means for other newspaper publishers on the brink.”
Is it time for government intervention — for more checks and balances — on the level of risk and leveraging corporations can impose on critical information media?
Under “mountains of debt and falling ad revenue” the Tribune Company, the American owner of The Los Angeles Times and The Chicago Tribune, filed for bankruptcy protection in a U.S. federal court, reported the New York Times.
The company — along with its once-venerable newspapers — was bought last year by real estate investor Samuel Zell. The bankruptcy filing (reproduced here) notes the company has nearly $13 billion in debt and just $7.6 billion in assets; the Times noted that “most of that debt was taken on when Mr. Zell acquired the company — a deal he struck using mostly borrowed money.”
Noted the Times, “It is only the latest — and biggest — sign of duress for the newspaper industry yet. Several newspaper companies have struggled to cope with declining revenues and mounting debt woes … It is unclear what Tribune’s filing means for other newspaper publishers on the brink.”
Is it time for government intervention — for more checks and balances — on the level of risk and leveraging corporations can impose on critical information media?
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