Friday, January 16, 2009

Minneapolis Star Tribune Files Chapter 11

The bad news in the newspaper business continued to mount on Thursday as The Star Tribune of Minneapolis filed for bankruptcy protection.

Star Tribune management warned last month that it would seek bankruptcy protection if it did not win a series of labor concessions on wages and other matters by Friday. Talks with the major unions broke down last week and had not resumed.

The newspaper announced the filing on its Web site Thursday evening. [Click for MORE]

> Star Tribune files for Chapter 11 bankruptcy
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Bankruptcy judge OKs Tribune Co.'s
short-term financing plan

Tribune Co. passed an early hurdle in its Chapter 11 bankruptcy case Thursday when a U.S. bankruptcy judge signed a motion authorizing the continuation of a short-term financing arrangement worth $300 million.

Judge Kevin Carey also granted the company more time to file schedules of its assets and liabilities and other financial statements.

The financing arrangement, supplied by Barclays Bank and secured by Tribune receivables, will last until April. At that point, Tribune will have to renegotiate with Barclays or seek financing elsewhere. [Click for MORE]

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