It's only going to get worse. Stimulus now, please. From the NYT:
The Tribune Company filed for bankruptcy protection in a federal court in Delaware on Monday, as the publisher of newspapers like The Los Angeles Times and The Chicago Tribune struggled to cope with rising debt and falling ad revenue.
Tribune, which was acquired last year by billionaire real estate investor Samuel Zell, had hired bankruptcy advisers in recent weeks as it negotiated with creditors over debt covenants. (Read the bankruptcy petition here.)
It is only the latest — and biggest — sign of duress for the newspaper industry yet. Several newspaper companies have struggled to cope with declining revenues and mounting debt woes. Tribune has pared back the newsrooms of many of its papers, and it sold off Newsday to Cablevision’s Dolan family earlier this year.
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. Zell acquired the company — a deal he struck using mostly borrowed money. All of the now privately held company’s equity is owned by an employee stock-ownership plan.
