Home > attorneys > Tribune Bankruptcy Exit Plan – One to be Remembered by

Tribune Bankruptcy Exit Plan – One to be Remembered by

As we all know Media conglomerate, Tribune Co. has been operating in bankruptcy for the last couple of years.  Back in 2008 Tribune filed for bankruptcy protection in order to restructure.  Sam Zell, it’s billionaire owner at the time called it a “perfect storm” that took place due to the turbulent economy.  As the web era has taken its boom over the last few years, classifieds, which made up about half of the ad revenue suffered shrinking margins.

Tribune is known for their publishing as well as broadcasting segments represented by such entities as the Los Angeles Times and the Chicago Tribune.  They are now getting ready for a “bankruptcy exit” like no other after stabilizing.  After all, why not leave with a bang for your buck?  According to court documents, upon exiting, Tribune plans to pay their top managers bonuses and incentives in the amount of $16.2.  In the Delaware Bankruptcy Court, Tribunes plans to pay about $10.3 million to the organizations top 20 managers, $4.6 to 19 managers who spearheaded the operating units and five will also receive bonus payments under the cash flow-based program.  They are looking out for their “little” guys as well.  In a program worth 1.3 million, 70 employees will be eligible to receive up to $65,000 in bonuses.

With cash payouts like this, it has some not so glad unions standing by with a critical eye.  Since mid last year unions have had concerns such as management setting up easy to achieve targets making for a “a lay-up for management.”  Other points the unions have made is that they are incentivizing management on cash flow but cutting staff and holding salaries steady due to declining revenue.

The unions as well as Tribune Co. have to sit and wait while the plan goes into review by creditors and the Delaware Bankruptcy Court.

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  1. June 1, 2010 at 5:59 pm

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