Tribune facing an 11th-hour grilling

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TRIBUNE FACING 11TH HOUR GRILLING
[SOURCE: Chicago Tribune, AUTHOR: Michael Oneal mdoneal@tribune.com]
Tribune Co. executives were sweating out aggressive last-minute questioning Tuesday from bankers reluctant to fund the final portion of a debt-laden $8.2 billion deal to take the company private with Chicago billionaire Sam Zell, sources close to the company said. The Chicago-based media giant was still hoping to finalize its transaction by Thursday, but sources said the banks, worried about losing money on the deal in skittish credit markets, were scouring company records before committing to fund the transaction. It was unclear what information the bankers were seeking. But the dilemma they face is that with the credit markets in turmoil and Tribune Co.'s revenue in decline, they likely will be unable to sell the remaining $4.2 billion in loans and bonds to investors. Even six months ago, Tribune and its banks had to entice debt investors with higher interest rates than anticipated to get the first part of the deal done. Since that time Tribune's revenue picture has deteriorated. The company, which owns the Chicago Tribune, Los Angeles Times and WGN-Ch. 9 among its many media properties, has suffered from competition brought on by the Internet and other digital media. But it is also heavily exposed in markets such as Florida and California, states that have been hardest hit by the housing crisis. Now, the Tribune loan is trading on the open market at a steeper discount, meaning that if the Tribune's banks were to seek buyers for the remaining portion, the terms would be unworkable. Consequently, the banks will have to hold undesirable credit on their own balance sheets.
http://www.chicagotribune.com/business/chi-071218fitzsimons,0,6979039.st...

* Tribune CEO is expected to resign
[SOURCE: Los Angeles Times, AUTHOR: Thomas S. Mulligan and Michael A. Hiltzik]
Tribune Co. Chairman and Chief Executive Dennis J. FitzSimons is expected to announce his resignation as early as today. The resignation would be the first departure of a top Tribune executive as the company prepares to go private under the leadership of Chicago businessman Sam Zell. FitzSimons, 57, a 25-year veteran of Tribune, is in line to walk away with as much as $40 million, depending on the date on which he chooses to depart.
http://www.latimes.com/business/printedition/la-fi-tribune19dec19,1,4475...
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Tribune facing an 11th-hour grilling