The Wall Street Journal on the ongoing Tribune Co. bankruptcy fiasco:
Bankruptcy has been a surprising breeze for a number of companies that sought protection from creditors over the past two years.
But 18 months in, one case remains stymied in squabbling over just how the company landed in bankruptcy in the first place. That is Tribune Co., the ailing media company that was taken private in 2007 with an $8.2 billion deal by real-estate investor Sam Zell. Today, the transaction continues to haunt the company, its management and creditors.
A group of creditors holding Tribune’s bank debt is threatening to upend the newspaper-and-television station owner’s plans to exit from bankruptcy later this summer. Separate lender groups are deposing Mr. Zell and James B. Lee, a top banker at J.P. Morgan Chase & Co., which backed the buyout. And a court-appointed examiner probing Mr. Zell’s buyout for possible fraud could give ammunition to creditors of all stripes to battle Tribune’s restructuring plans.
The Tribune Co., of course, is the parent company of The Morning Call. The WSJ also reports that in 2009–despite other media companies’ revenue growth, especially in the last quarter–tribune operating cash flow dropped 37%.
On Sam Zell, the motorcycle-riding corporate bandit:
Mr. Zell himself stepped down as chief executive and has refocused on real-estate deals, leaving his ill-fated media venture behind.
If you haven’t read it yet, the 2007 profile of Zell in The New Yorker is a must read.