The Tribune Company, the publishers of The Chicago Tribune, The Los Angeles Times, Newsday and others has hired bankruptcy advisers.
According to the NY Times, the hiring of Investment bank Lazard and the law firm Sidley Austin is a move by the “ailing newspaper company seeks to stave off a potential bankruptcy filing, people briefed on the matter said.”
The Tribune Company reported a $124 million loss for the 3rd quarter. As we reported November 10, the company faces a difficult debt situation with interest expenses growing to $232 million in the quarter up from $175 million for the same period last year. Total debt for the group now totals $11.8 billion, up from $9.4 billion.
The Tribune Company does have one asset they could see: The Chicago Cubs, but would struggle to sell any of its newspapers in the current market. The hiring of bankruptcy advisors may be an attempt to keep bankruptcy away as the NY Times reports, but it’s also the first thing you do when you’re preparing to declare bankruptcy as well.