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Tribune company files for bankruptcy

What will be the fate of both the Orlando and Sun-Sentinel? From AP-

NEW YORK - Media conglomerate Tribune Co., smothered by $13 billion in debt and weak prospects for generating cash through advertising, on Monday became the first major newspaper publisher to seek bankruptcy protection since the Internet began siphoning readers from traditional outlets.

Although Tribune's next major principal payment on the debt, of $593 million, isn't due until June, Tribune has been in danger of missing lender-imposed financial targets at year's end. Those targets are based on the level of Tribune's debt relative to its cash flow, and become harder to meet as revenue declines, even if the debt itself doesn't increase.

Other newspaper companies have also struggled with their debts, but many have successfully negotiated with lenders to ease their targets in exchange for higher interest rates.

I am not going to rub my hands in glee at the downfall of Tribune. For I know a few people who work for one of that empire's publications. As a blogger, I use Sun-Sentinel aritcles for my posts more often than any news source with the exception of AP and The Palm Beach Post. If the Sentinel folds, where do I find news coverage of the happenings in Broward County 20-25 miles to my south?

Bob at The Daily Pulp, who called this the quickest bankruptcy since worldcom, writes-

We all saw this coming, just not this fast. Understand that this doesn't mean the company is necessarily going out of business (though that is a distinct possibility). It means it will get a chance to stave off creditors and restructure its debt. But with that, usually, comes very deep cuts and asset sales. The Sentinel (and the Herald, for that matter) are profitable newspapers, just not as profitable as they used to be.
More cuts won't improve the product, as can be seen on a daily basis with the Palm Beach Post. If a South Florida newspaper folds, or we see a merger between two of the three dailies sometime in the next five years I won't be surprised.

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Comments (10)

It had become the Barack Ob... (Below threshold)
Pretzel Logic:

It had become the Barack Obama Newsletter anyway. (still is) The guy is in EVERY section. Sports, food, travel you name it.

Well, I am rubbing my hands... (Below threshold)
hermie:

Well, I am rubbing my hands with glee, primarily because of how they wh***d themselves for Obama. They were the ones who went to extraordinary lengths to get a Dem-Friendly judge in LA to open the sealed child custody records of Obama's General Election Opponent, Ryan...and publicized the unseamly accusations. It was the end of Ryan's candidacy, even though no laws were broken and in these kinds of cases,when the custody of a child in at stake, all sorts of unproven and highly emotional accusations are thrown around by both parties.

The Tribune was 200% in the tank for Obama, and never bothered to look into Obama's relationship with Rezko or Ayers. They never looked at his lackluster career and his supporting the corruption in Chicago and Illinois. They knew who he was, but they never bothered to tell anyonea anything but the whitewashed story.

Do you think becoming a lef... (Below threshold)
bill-tb:

Do you think becoming a leftist propaganda rag was a good idea? I bet donw the center news with no propaganda would sell better.

Too late now.

The only thing worth the pr... (Below threshold)
hermie:

The only thing worth the price of the paper is John Kass.

They could always apply for... (Below threshold)

They could always apply for a federal bailout, heck, everyone else is doing it.

Here that tinkle.... tinkle... (Below threshold)
Marc:

Here that tinkle.... tinkle.... tinkle?

That's the sound or lee ward and hooson collectively peeing their panties as they lose a source of propaganda to quote.

If it were MSNBC they'd be headed for an open 10th floor window!

The Rocky Mountain News in ... (Below threshold)
COgirl:

The Rocky Mountain News in Colorado announced that they are up for sale. It's unlikely that they will find a buyer by their mid-January deadline. It saddens me because it is the more conservative of the two major newspapers in Colorado. When the RMN is gone, I won't subscribe to the Denver Post. A paper like the Tribune deserves this fate, sad when it happens to the ones that offer some diversity.

In other news, fish bitterl... (Below threshold)
irongrampa:

In other news, fish bitterly complained about the loss of their wrappers.

Ahhh just for fun:... (Below threshold)
Pretzel Logic:
The LA Times has been a rag... (Below threshold)
Magic:

The LA Times has been a rag for years and the Tribune has been in the center of corruption for decades. Who cares if the fail? They haven't been a news organization for very long time, now they only specialise in propaganda for the Democratic Party. Farewell, Who Cares.




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