Citing a financial slump - due to a loss of revenue to the Internet and a transformation of rich media in recent years - the cash-strapped Tribune Co. announced a bankruptcy filing may be in the wind to stave off creditors and float the Chicago-based conglomerate until the economy ends its downhill spiral.
The Tribune - which owns the Los Angeles times and the Chicago Cubs and about twenty-three TV stations - is seeking to renegotiate $12 billion (!) in debt primarily with financial institutions.
While the yuletide season is usually the time to feel jolly, there are glum faces all-around at the Tribune.
"Some advertisers are still pushing to get through the holiday season, but when others look to cut discretionary spending, we are right at the top of the list," an executive solemnly noted to the press.
Sam Zell had his hope chest pinned on selling the Chicago Cubs for top dollar.
But, landing a profitable deal will be tough.
Some hint that Zell - the mercurial business man that he is - may be crying wolf.
A former Tribune executive who has been following the trials and tribulations of Zell's topsy-turvy empire has conjectured that the bankruptcy proposal may be a sneaky way for the feisty company head to maneuver himself into a bargaining posture that is better-suited to structuring Tribune debt load.
Over the past few months Zell has laid off hundreds of employees in an attempt to cut costs and pay bills.
Russell H. Ewing once said:
"A boss creates fear, a leader confidence. A boss fixes blame, a leader corrects mistakes. A boss knows all, a leader asks questions. A boss makes work drudgery, a leader makes it interesting."
Sam Zell on a good day!
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