Chicago's Tribune Co files reorganization plan

From Reuters....

Sat, Oct 23 2010

NEW YORK (Reuters) - Tribune Co filed a reorganization plan late on Friday that will turn over control of the bankrupt newspaper publisher to its leading creditors including JPMorgan Chase & Co, Angelo Gordon & Co and Oaktree Capital Management.

The plan signals an important step toward the recovery of the media company -- which owns the Los Angeles Times and the Chicago Tribune -- from what Sam Zell, the real estate developer and architect of the 2007 leveraged buyout, called "the deal from hell."

Zell took the 163-year-old publisher and owner of 23 television stations private in a 2007 deal that loaded the company with more than $8 billion in debt. It filed for bankruptcy a year later, buckling under the weight of a heavy debt load and a severe decline in advertising revenue.

The reorganization plan was made public just hours after chief executive Randy Michaels, under fire from reports that he tolerated a sexist and hostile workplace, resigned.

Michaels was replaced by a committee of Don Liebentritt, the company's chief restructuring officer; Nils Larsen, its chief investment officer; Tony Hunter, the CEO of Chicago Tribune Co; and Eddy Hartenstein, the CEO of Los Angeles Times Communications LLC.

Larsen was also named chairman of Tribune Broadcasting.

However, the new management is unlikely to serve more than a few months.

Creditors have been in contact with media executives including Peter Chernin, former chief operating officer of News Corp, to become chairman, people familiar with the discussions said.

The new agreement combines two previously announced settlement offers from leading lenders and a group of unsecured creditors.

Some bondholders would receive $420 million, or 32.73 cents to the dollar, and interest in a litigation trust.

The plan requires the approval of the court and creditors.

The company expects operating cash flow for the full year 2010 to be $617 million, or $123 million higher than 2009.

U.S. Bankruptcy Judge Kevin Carey ruled on Friday to let a committee of unsecured creditors sue Zell, other executives and advisers.

Bondholders opposing the reorganization plan are girding for a fight.

Daniel Golden, an attorney representing hedge fund Aurelius Capital Management LP, said on Friday they planned to file a rival plan next week. Aurelius is among the largest holders with $1.3 billion of senior Tribune bonds.

(Reporting by Kenneth Li; editing by Jim Marshall)

The New Nerd

Story in Sunday's Boston Globe really highlights how the entrepreneurial spirit is alive and well. It talks about the "success" of thirteen year old social networker, Lane Sutton.

Worth the read.

5 Minute Management Course...

This is a few years old but worth repeating. Source unknown.

Lesson 1:

A priest offered a Nun a lift.

She got in and crossed her legs, forcing her gown to reveal a leg.

The priest nearly had an accident.

After controlling the car, he stealthily slid his hand up her leg.

The nun said, 'Father, remember Psalm 129?'

The priest removed his hand. But, changing gears, he let his hand slide up her leg again. The nun once again said, 'Father, remember Psalm 129?'

The priest apologized, 'Sorry Sister but the flesh is weak.'

Arriving at the convent, the nun sighed heavily and went on her way.

On his arrival at the church, the priest rushed to look up Psalm 129. It said, 'Go forth and seek, further up, you will find glory.'

Moral of the story:

If you are not well informed in your job, you might miss a great opportunity.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Lesson 2:

A sales rep, an administration clerk, and the manager are walking to lunch when they find an antique oil lamp.

They rub it and a Genie comes out. The Genie says, 'I'll give each of you just one wish.'

'Me first! Me first!' says the administration clerk... 'I want to be in the Bahamas, driving a speedboat, without a care in the world.' Poof! She's gone.

'Me next! Me next!' says the sales rep. 'I want to be in Hawaii, relaxing on the beach with my personal masseuse, an endless supply of pina coladas, and the love of my life.' Poof! He's gone.

'O.K., you're up,' the Genie says to the manager. The manager says, 'I want those two back in the office after lunch.'

Moral of the story:

Always let your boss have the first say.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Lesson 3

An eagle was sitting on a tree resting, doing nothing.

A small rabbit saw the eagle and asked him, 'Can I also sit like you and do nothing?' The eagle answered, 'Sure, why not.'

So, the rabbit sat on the ground below the eagle and rested. All of a sudden, a fox appeared, jumped on the rabbit and ate it.

Moral of the story:

To be sitting and doing nothing, you must be sitting very, very high up.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Lesson 4

A turkey was chatting with a bull. 'I would love to be able to get to the top of that tree,' sighed the turkey, 'but I haven't got the energy.' 'Well, why don't you nibble on some of my droppings?' replied the bull. 'It's full of nutrients.'

The turkey pecked at a lump of dung and found it actually gave him enough strength to reach the lowest branch of the tree.

The next day, after eating some more dung, he reached the second branch.

Finally after a fourth night, the turkey was proudly perched at the top of the tree.

He was promptly spotted by a farmer, who shot him out of the tree.

Moral of the story:

Bullshit might get you to the top, but it won't keep you there.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Lesson 5

A little bird was flying south for the winter. It was so cold the bird froze and fell to the ground in a large field.

While he was lying there, a cow came by and dropped some dung on him.

As the frozen bird lay there in the pile of cow dung, he began to realize how warm he was.

The dung was actually thawing him out!

He lay there all warm and happy, and soon began to sing for joy. A passing cat heard the bird singing and came to investigate. Following the sound, the cat discovered the bird under the pile of cow dung, and promptly dug him out and ate him.

Moral of the story:

(1) Not everyone who shits on you is your enemy.

(2) Not everyone who gets you out of shit is your friend.

(3) And when you're in very deep shit, it's best to keep your mouth shut!

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Lesson 6

A man is getting into the shower just as his wife is finishing up her shower, when the doorbell rings. The wife quickly wraps herself in a towel and runs downstairs. When she opens the door, there stands Bob, the next-door neighbor.



Before she says a word, Bob says, "I'll give you $800 to drop that towel."



After thinking for a moment, the woman drops her towel and stands naked in front of Bob After a few seconds, Bob hands her $800 and leaves.



The woman wraps back up in the towel and goes back upstairs. When she gets to the bathroom, her husband asks, "Who was that?"



"It was Bob, the next door neighbor," she replies.



"Great!" the husband says, "did he say anything about the $800 he owes me?"



Moral of the story:

If you share critical information pertaining to credit and risk with your shareholders, in time, you may be in a position to prevent avoidable exposure.

THUS ENDS THE FIVE MINUTE MANAGEMENT COURSE