Some of our readers may recall a post from last month concerning Tribune Co., the national media company that is currently in bankruptcy. Tribune owns the Los Angeles Times and the Chicago Tribune, as well as television stations in San Diego and Los Angeles. The company has been going through a Chapter 11 bankruptcy for quite awhile now, but it appears that the end of the process is in sight.
According to recent reports, Tribune has finally put together a business reorganization plan that is likely to be approved. In the latest plan, Tribune will hand over ownership to some of its creditors, including JPMorgan Chase. Although it appears that approval of the restructuring plan is likely, Tribune will still face some regulatory hurdles in implementing the details.
Anyone who is following this particular story probably knows that the process of Chapter 11 bankruptcy is meant for businesses that intend to remain in operation while trying to reorganize the company structure and pay creditors over time. Sometimes the process results in a sale of assets or turning over ownership to creditors, but that is not always the case. A company can successfully reorganize and streamline its operations and emerge from the Chapter 11 process intact, but with a much more profitable and functional design.
As Tribune's bankruptcy comes to an end, it will be interesting to see how the company does going forward. Millions of people have come to trust and rely on the newspapers and television stations owned by Tribune, so any changes in the company's business structure may be experienced in some form or another in communities throughout the country.
Source: Reuters, "Tribune seen nearing bankruptcy conclusion," Tom Hals, June 7, 2012