The New York Times is reporting the Tribune Co., owners of the Los Angeles Times, Chicago Tribune, Chicago Cubs, Wrigley Field and dozens of television and radio stations, is getting advice on bankruptcy proceedings and creditor manoeuvring because it is flirting dangerously close to cash-flow levels below the requirements of bondholders.
The company was taken private only last December, but in that year revenue has slipped considerably and cost-cutting has been insufficient in addressing the cash-flow challenges. It has to maintain a debt-to-EBITDA ratio and faces a test of that ratio later this month.
