Hell for Zell: The Bankruptcy of Tribune Company


IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
  
Case Studies | Case Study in Business, Management, Operations, Strategy, Case Study

ICMR HOME | Case Studies Collection

Case Details:

Case Code : BSTR317
Case Length : 19 Pages
Period : 2000-2009
Pub Date : 2009
Teaching Note :Not Available
Organization : Tribune Company
Industry : Newspapers
Countries : USA

To download Hell for Zell: The Bankruptcy of Tribune Company case study (Case Code: BSTR317) click on the button below, and select the case from the list of available cases:





Price:

For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

» Business Strategy Case Studies
» Case Studies Collection
» Business Strategy Short Case Studies
» View Detailed Pricing Info
» How To Order This Case
» Business Case Studies
» Area Specific Case Studies
» Industry Wise Case Studies
» Company Wise Case Studies


Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

"I don't think that I ever woke up in the morning and said, 'I want to own a newspaper.' I think that the attraction to the Tribune deal was the ability to put the deal together, to apply a business patina to what has historically been a non-business business, and ultimately test the thesis as to whether or not there is a place for the newspaper in the 21st century."1

- Sam Zell, Chairman and CEO, Tribune Company in 2008.

"Timing is everything. He (Sam Zell) timed when to get out of real estate at the perfect time, and he probably timed when to get into newspapers at the worst time. But how can you know?"2

- John Morton, President of Morton Research Inc, a media consulting group in 2008.

Introduction

On December 8, 2008, the Tribune Company (Tribune), a major US media conglomerate with several newspapers and TV stations, filed for Chapter 11 bankruptcy protection3. The company's Chairman and CEO, Sam Zell (Zell), said that he had been compelled to take this step after plummeting cash flows had left the company in a precarious financial position. Zell stated that he wanted to restructure payments to some lenders, but they had refused to undertake a broader restructuring of the debt, leaving him with no option but to file for bankruptcy protection. However, he stated that the company had enough funds to continue day-to-day operations, while it formulated a restructuring plan to be submitted to the bankruptcy court, within 180 days.

Hell for Zell: The Bankruptcy of Tribune Company - Next Page>>

1] Joanne Lipman, "Zell's Sell,"www.portfolio.com, November 24, 2008.
2] Ilaina Jonas, "Tribune Marks One of Zell's Rare Misses,"www.forbes.com, December 8, 2008.
3] Under the US Bankruptcy Code, Chapter 11 allows for financial reorganization of the company under bankruptcy laws. After filing, companies are allowed to function and develop a plan for restructuring.

Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Textbooks, Work Books, Case Study Volumes.