It's official: Tribune Co. files for bankruptcy

The New York Times reports the Tribune Company has filed for bankruptcy protection in federal court. The company has struggled to "cope with rising debt and falling ad revenue" in recent years. NYT's "Deal Book" calls the filing the "biggest sign of duress for the newspaper industry yet." 

From the story:

In a court filing, Tribune said it had nearly $13 billion in debt, compared to $7.6 billion in assets. Most of that debt was taken on when Mr. [Samuel] Zell acquired the company- a deal he struck using mostly borrowed money. All of the now privately help company's equity is owned by an employee stock-ownership plan, which is likely to get wiped out. 

For now, Tribune officials said they have enough cash "to keep operating as usual." One of its existing creditors, Barclays, has agreed to help the company maintain regular operations during the bankruptcy proceedings. Top creditors listed in the filing include JPMorgan Chase, Merrill Lynch and Deutsche Bank. 

Tribune has retained Alvarez & Marsal, the current advisers to Lehman Brothers, as consultants.

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