Tribune Co. bankruptcy hearings begin

The initial hearing in the Tribune Co. bankruptcy case took place on Wednesday, according to the Los Angeles Times. This marks the first stage of the company’s Chapter 11 reorganization.

Tribune, which also owns 23 television stations and the Chicago Cubs baseball team, is the first major newspaper publisher to file for bankruptcy protection since the Internet plunged the industry into a struggle for survival.
[Attorney James] Conlan told the judge that with the exception of two stock pledges, the Tribune operating companies have no secured debt, which leaves the company in “a strikingly good position” to reorganize intelligently.

Conlan also said the biggest reason the company was forced to file for Chapter 11 protection was the enormous decline in advertising the industry has experienced over the past several quarters.

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