Chicago Tribune files for bankrupcy

[Peoriaman]

http://dealbook.blogs.nytimes.com/2008/12/07/tribune-hires-bankruptcy-advisers/ Edited December 8, 2008 by Peoriaman

[cbbryan]

How would that work if the Tribune filed bankruptcy before selling the Cubs?

[KingCubsFan]

How would that work if the Tribune filed bankruptcy before selling the Cubs?

This may actually help. From what the newspapers have said, the was supposed to be debt-laden deal to avoid capital gains tax. If they start selling off assets to pay creditors, a large amount of cash probably becomes more important. It's too bad Cuban is out of the running, because I'm sure he's got plenty of cash on hand.

[Wilson A2000]

Haven't the Cubs already been sold to Zell?

[Lefty]

Done per CNBC.

[Wilson A2000]

http://www.chicagotribune.com/news/chi-081208-tribune-bankruptcy-story,0,4656896.story

 

Short and sweet. Could have saved a bunch by not signing Marquis.

[Lefty]

Cubs not part of the filing. Not sure how that works.

[Soul]

WSJ piece:

 

http://online.wsj.com/article/SB122876270495988567.html?mod=googlenews_wsj

[Jehrico]

Haven't the Cubs already been sold to Zell?

Not quite. Zell bought the Trib, which owns the Cubs and is filing for bankruptcy. If they weren't already trying to spin the Cubs off for cash, then they could be forced to do so as part of the bankruptcy. The Cubs and Wrigley should be looked at as if they are simply assets that have a cash value on the market in this situation. Regardless of what happens to the trib, the Cubs are moving on.

[Soul]

One can hope the judge assigned to the case forces WGN to reorganize their TV lineup.

[photoguy9883]

How would that work if the Tribune filed bankruptcy before selling the Cubs?

This may actually help. From what the newspapers have said, the was supposed to be debt-laden deal to avoid capital gains tax....

 

or not

 

The bankruptcy filing appears to effectively freeze a sale of the Cubs, which Tribune had relied on to provide a cash injection. Through the Cubs and Tribune's other sports-related assets are excluded from the bankruptcy filing, potential buyers and bankruptcy lawyers said would be complicated to buy the Cubs now.

 

Tribune received three bids of at least $850 million for the Cubs just before a Thanksgiving deadline for second-round bids. Monday, two of the bidding groups expressed deep frustration at a process they now expect will be substantially delayed because of the role the bankruptcy court will play in any transaction.

 

"This an absolute mess," said the financial adviser for one bidder. "God know what happens now."

 

The bankruptcy court would have to approve the overall auction process, which a rival bidder could object to, subjecting the process to further delay and uncertainty. The bankruptcy court and other stakeholders also must approval a sale of the Cubs, according to Paul Rubin, a bankruptcy attorney who has worked with sports franchises.

[treebird]

this means the payroll goes way up now, right?

[Mephistopheles]

maybe the trib can try and get a big bailout from obama in order to increase payroll ten fold.

 

oh wait obama would do that for the sox, not the cubs. loser.

[Wilson A2000]

I've heard different things. On WGN news, the reporter said that the Cubs are a separate entity and not not filed under the Tribune Company's holding so today's news won't affect them. Hub Arkush, the bankruptcy authority that he is, says that any selling of the Cubs has to now go through the judge or bankruptcy arbiter. Who knows.

[photoguy9883]

I've heard different things. On WGN news, the reporter said that the Cubs are a separate entity and not not filed under the Tribune Company's holding so today's news won't affect them. Hub Arkush, the bankruptcy authority that he is, says that any selling of the Cubs has to now go through the judge or bankruptcy arbiter. Who knows.

 

The bankruptcy filing won't effect the operations of the Cubs directly but since Tribune owns the team anything that the company wants to do with it (e.g. sell it ) will have to go through the judge.

[cbbryan]

So can the Cubs sign Tex and Furcal and still trade for Peavy and if they come up short on funds just include them in the bankruptcy?

[Outshined_One]

I've heard different things. On WGN news, the reporter said that the Cubs are a separate entity and not not filed under the Tribune Company's holding so today's news won't affect them. Hub Arkush, the bankruptcy authority that he is, says that any selling of the Cubs has to now go through the judge or bankruptcy arbiter. Who knows.

 

The bankruptcy filing won't effect the operations of the Cubs directly but since Tribune owns the team anything that the company wants to do with it (e.g. sell it ) will have to go through the judge.

 

Yep!

 

In interesting news, this Chapter 11 filing might not have been done for the right reasons...

 

Link

 

Intercepted calls allegedly show that Blagojevich directed Harris to inform Tribune Owner and an associate, identified as Tribune Financial Advisor, that state financial assistance would be withheld unless members of the Chicago Tribune's editorial board were fired, primarily because Blagojevich viewed them as driving discussion of his possible impeachment.

 

...

 

In a November 11 intercepted call, Harris allegedly told Blagojevich that Tribune Financial Advisor talked to Tribune Owner and Tribune Owner "got the message and is very sensitive to the issue." Harris told Blagojevich that according to Tribune Financial Advisor, there would be "certain corporate reorganizations and budget cuts coming and, reading between the lines, he's going after that section." Blagojevich allegedly responded. "Oh. That's fantastic." After further discussion, Blagojevich said, "Wow. Okay, keep our fingers crossed. You're the man. Good job, John."

[KingCubsFan]

How would that work if the Tribune filed bankruptcy before selling the Cubs?

This may actually help. From what the newspapers have said, the was supposed to be debt-laden deal to avoid capital gains tax....

 

or not

 

The bankruptcy filing appears to effectively freeze a sale of the Cubs, which Tribune had relied on to provide a cash injection. Through the Cubs and Tribune's other sports-related assets are excluded from the bankruptcy filing, potential buyers and bankruptcy lawyers said would be complicated to buy the Cubs now.

 

Tribune received three bids of at least $850 million for the Cubs just before a Thanksgiving deadline for second-round bids. Monday, two of the bidding groups expressed deep frustration at a process they now expect will be substantially delayed because of the role the bankruptcy court will play in any transaction.

 

"This an absolute mess," said the financial adviser for one bidder. "God know what happens now."

 

The bankruptcy court would have to approve the overall auction process, which a rival bidder could object to, subjecting the process to further delay and uncertainty. The bankruptcy court and other stakeholders also must approval a sale of the Cubs, according to Paul Rubin, a bankruptcy attorney who has worked with sports franchises.

I should have been clearer. I was referring to actually getting the financing necessary.

[TruffleShuffle]

from the onion:

 

http://www.theonion.com/content/files/images/wdyt_photo6.article.jpg

 

Cathy Moorhead,

Systems Analyst

"I guess their strategy of benching Ronny Cedeno so he could write all the news didn't pan out."