The Tribune company, owner of the Chicago Cubs, has filed for chapter 11. How this affects the Cubs.
Tribune's debt service costs, most of them incurred as a result of the
going-private transaction a year ago, have been running at the rate of
about $1 billion a year. A $512-million principal payment related to
the buyout is due in June.
Money for that payment was to come from asset sales, particularly the sale of the Chicago Cubs baseball franchise. That sale, originally expected to take place this year, has been delayed in part because of the credit crisis and is now expected to take place in 2009.
Some analysts have projected the value of the Cubs, its landmark Wrigley Field ballpark and other associated real estate at more than $1 billion.
Zell, the chairman and CEO of Tribune, said in his statement that the baseball franchise would not be part of the bankruptcy filing. He said in a conference call with Tribune reporters that he expected a deal for the baseball club to be completed soon.
Money for that payment was to come from asset sales, particularly the sale of the Chicago Cubs baseball franchise. That sale, originally expected to take place this year, has been delayed in part because of the credit crisis and is now expected to take place in 2009.
Some analysts have projected the value of the Cubs, its landmark Wrigley Field ballpark and other associated real estate at more than $1 billion.
Zell, the chairman and CEO of Tribune, said in his statement that the baseball franchise would not be part of the bankruptcy filing. He said in a conference call with Tribune reporters that he expected a deal for the baseball club to be completed soon.
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