The company that owns the Los Angeles Times, Chicago Tribune and Chicago Cubs baseball team is preparing for a possible bankruptcy filing as it attempts to renegotiate $12 billion in debt with banks and other creditors, a Tribune Co. executive said Sunday.
Tribune and many other newspaper owners, already hurting from the migration of advertising revenue to the Internet, have suffered even bigger setbacks amid the broad economic downturn.
Other media companies, such as Freedom Communications Inc., which operates the Orange County Register, have been struggling with their debt.
The newspaper industry continues to see extraordinary declines in ad revenues, and Tribune is no exception.
The company -- owner of eight newspapers, 23 television stations and other assets, including a share of the Food Network -- has laid off hundreds of employees and combined operations in an attempt to pay its bills.