Tribune arranges unique bankruptcy financing deal

Media group Tribune Co has arranged an untraditional financing deal with Barclays Capital, involving about $350 million in debt agreements, to fund operations during its reorganization. Unlike a typical debtor-in-possession bankruptcy loan, the company is seeking court approval of a $50 million letter of credit from Barclays. Tribune also wants approval to continue using a $300 million trade receivables facility it entered into with Barclays in July. The company has an outstanding balance of $225 million on the facility, which was amended for the bankruptcy, and Tribune is seeking to guarantee that obligation. Under the trade receivables facility, Barclays does not loan directly to the bankrupt parent company, but to a borrower known as Tribune Receivables LLC, which receives about 80 percent of the company's incoming cash receipts and was not placed into bankruptcy.