The Tribune Company has filed for Chapter 11 bankruptcy protection, the Chicago-based media corporation announced Monday.
It will continue to operate its media businesses during the restructuring, including publishing its newspapers and running its television stations and interactive properties as long as it has the cash to do so it said in a press release. The Chicago Cubs and Wrigley Field are not part of the filing.
"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."
A number of news sites reported earlier today that the company had hired the investment back Lazard Ltd as well as law firm Sidley Austin as financial advisers for a possible filing.
Zell purchased the Tribune a year ago in a debt-backed deal taking the company private. It has since been struggling under weak ad sales during a troubled economy to pay off the $1 billion in interest it owes this year on an estimated $12 billion in debt.
