Tribune prepares to spin off business units

Tribune Company is streamlining its corporate structure for the possible sale of publishing and broadcast units after its exit from bankruptcy.

The Chicago-based company recently filed a document with the Delaware court handling the bankruptcy that shows it will collect its units into fewer subsidiaries as part of its reorganization. The company also plans to create a new publishing subsidiary under the parent that will hold all its publishing entities, including eight new limited liability companies for its main English-language papers. The media company is expected to win court approval of its reorganization plan early next month at a hearing over several days, giving Tribune a chance to exit bankruptcy by the end of the year. Bankers, consultants and industry executives expect the new creditor-owners to be eager to convert assets to cash by separating and selling some, especially given the diverging prospects for broadcast and print. While Tribune could be streamlining its structure for the sake of simplification and potential tax benefits, it's also a potential set-up for sales, said Dan Wikel, a restructuring consultant and managing director for Chicago-based Huron Consulting Group.