by Deb Cupples | First, some financial institutions seem worried about
bankruptcy -- firms run by seemingly
reckless yet egregiously well paid people. Then, its America's car makers. Now, the newspaper
industry is following suit?
The Wall Street Journal reports:
"Tribune Co. is preparing for a possible filing for bankruptcy-court protection as soon as this week, according to people familiar with the matter, in a sign of worsening trouble for the newspaper industry.
"In recent days, as Chicago-based Tribune continued talks with lenders to restructure its debt, the newspaper-and-television concern hired investment bank Lazard Ltd. as its financial adviser and law firm Sidley Austin to advise the company on a possible trip through Chapter 11 bankruptcy, people familiar with the matter say.
"A Tribune spokesman said the company doesn't comment on rumors or speculation." (WSJ)
Ok, it certainly seems like bankruptcy may be in the future, but at this point it is just rumor and speculation.
Here's the problem: when a seemingly credible publication like the Wall Street Journal runs even a carefully qualified article about a company's possible bankruptcy, many readers may panic.
Tribune Company is no longer publicly traded (it went private in December 2007), but bad media coverage may not be helpful as the company tries to get help from lenders in "restructuring its debt."
I wonder what Tribune's executives and managers took home while the company was booking huge losses. I wonder why the company went private last year (after being publicly traded since 1983).
Given that Tribune Company is no longer publicly traded, the company's books are not particularly open -- so I'll likely not find out about executive pay. Oh well. I was just idly curious anyway.
Other Buck Naked Politics Posts:
* Cutting Executive Pay Would Save Jobs
* The Bear that Ate Wall Street....
* Paulson's & Congress's Bailout "Mistakes"
* Lehman Execs Redistribute Shareholder Wealth (to Themselves)
* AIG Execs Redistribute Shareholder Wealth (to Themselves)
* Execs Made Millions While Driving Companies into Ditch
* Someone Please Take the Economy Away from Mr. Paulson (Pt 2)
* Are Bailout Funds Being Misused?
* Five War Contractors Indicted for Randomly Killing Iraqi Civilians
* Media Fails to Mention Nasty Effects of Possible Automaker Bankruptcies
* New Fired U.S. Attorney Scandal
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