Tribune Debt Plummets 94% In Wall Street Trading
Published: December 08, 2008 7:30 PM ET
CHICAGO Tribune Co.'s publicly traded debt plummeted more than 94% on the New York Stock Exchange Monday afternoon as investors learned the Chicago media giant had filed for Chapter 11 bankruptcy protection.
Tribune subordinated debentures due 2029 (NYSE: TXA) opened at $17.26 -- and plunged around 2 p.m. EST as word of the bankrutpcy petition broke. The debt TXA closed at $1.07, down $16.92. The volume of 635,256 was more than five time normal.
NEW YORK (AP) -- Media conglomerate Tribune Co. has filed for bankruptcy protection.
The owner of the Chicago Tribune, the Los Angeles Times, the Chicago Cubs and other properties has $13 billion in debt.
Severe reductions in advertising this year because of the recession has put pressure on the company. Most of its debt comes from the complex transaction in which the company was taken private by real estate mogul Sam Zell last year.
Although the next major principal payment isn't due until June, analysts say Tribune has been in danger of missing lender-imposed financial targets.
Tribune (TXA) made the filing Monday in bankruptcy court in Delaware
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