Showing posts with label Tribune Co.. Show all posts
Showing posts with label Tribune Co.. Show all posts

Friday, February 19, 2010

Tribune Has Until March 31 to File Reorganization Plan

Tribune Co. has until March 31 to file its reorganization plan to the U.S. Bankruptcy Court in Delaware, according to a corporate memo posted on Romenesko.

From: Tribune Communications
Sent: Thursday, February 18, 2010 12:01 PM
Subject: Message from Randy and Gerry/Court Hearing Today

Today the U.S. Bankruptcy Court for the District of Delaware agreed to give us until March 31 to submit our plan of reorganization to the Court. Although we are close to filing a plan, we think that additional discussion with our creditors will be beneficial. We're still hopeful of reaching a settlement that is acceptable to all our creditors and we believe we are making progress.

The Court will hear arguments on motions related to Tribune's 2007 going-private transaction and a request to appoint a special examiner on April 13.

There will be some media coverage of today's court hearing, and during the next several weeks you can expect to see continued public posturing as negotiations continue. This is not unusual. As you have throughout this process, please stay focused on your job-continuing to serve our users, readers, viewers, listeners and advertisers.

We'll continue to keep you updated in the days ahead.

Randy and Gerry


Tom Hals of Reuters reports that "at the start of Thursday's hearing, the owner of the Los Angeles Times and Chicago Tribune said it would reduce the requested extension of exclusivity to the end of March from its original request to extend it into June."

Judge Kevin Carey approved the request to extend exclusivity, saying it may be Tribune's "last best chance" to resolve seemingly entrenched disputes.

The company now has until the end of next month to resolve the main issue of its bankruptcy, the role of its 2007 $8.2 billion leveraged buyout that was led by Sam Zell, a real estate developer.

The official committee of unsecured creditors have blamed banks that financed the deal for the company's bankruptcy, saying they knew the buyout debt would leave it insolvent.

The committee has requested permission to begin litigating against holders of secured claims for their role in the leveraged buyout, arguing the company has not been willing to do so.

If proven, the litigation, which one group of secured claim holders called the "World War III" of bankruptcy, could subordinate or disallow billions of dollars of secured claims.

Wednesday, May 6, 2009

Guild Says 50 Baltimore Sun Staffers Staging Byline Strike Over Tribune's Heavy-Handed Tactics

More than 50 Baltimore Sun newsroom staff members, including reporters, photographers and other bylined content producers, launched a byline strike today protesting layoffs and heavy handed tactics by owner Tribune Co., according to the Washington-Baltimore Newspaper Guild.

Newsroom staff members informed their managers today that they would withhold their bylines to protest last week's surprise layoffs of roughly 60 newsroom employees. Tribune, last week, slashed the newsroom by about one third, reducing the staff to 148 employees, a fraction of what it was in 1999 when the Chicago-based company acquired The Sun, which then boasted a newsroom staff of about 420 employees.

Some employees last week were fired while they were in the midst of writing and editing stories. Others were told to pack up their belongings immediately, and others were escorted out of the main newspaper building by security guards.

"Tribune's tactics are deplorable," said Cet Parks, Executive Director of the Washington-Baltimore Newspaper Guild. "Employees who poured their hearts and souls into putting out a great newspaper every day were told to get out and stay out. No fanfare, no thank you, no outplacement help, just hit the streets. Maybe that's big business Tribune way, but it isn't right. Through its actions Tribune has demonstrated that it has little regard or respect for its employees."

"These decisions were made without any discussions on alternative costs saving methods," added Brent Jones, a Sun editor and Washington-Baltimore Newspaper Guild representative. "We wanted to do something to show our former co‑workers that we're upset with how they were treated last week. We produce this paper and expect our voices to be heard."

Gus Sentementes, a Sun reporter and Guild representative, said "The wisdom and experience that has left The Sun in this period is shocking. Out‑of‑town and out‑of‑touch ownership has extracted a heavy toll on the newspaper."

Sentementes criticized Tribune Chairman Sam Zell for miscalculating the accelerating decline in the newspaper industry, jeopardizing The Sun's future by racking up $13 billion in debt, driving the company into bankruptcy and "degrading our 172‑year‑old institution."

"As we saw so vividly last week, the way our colleagues were so callously treated is not the way one of Baltimore's top corporate citizens ‑‑ and a civic watchdog ‑‑ should treat its own employees," Sentementes said.

Thursday, April 30, 2009

Tribune's Botched Job in Handling The Baltimore Sun Layoffs

The Tribune Co., owners of The Baltimore Sun, gave everyone a primer yesterday in how not to handle a layoff by limiting information and treating its staffers in an unprofessional manner.

Information about the layoff came out through a slow drip, and no official announcement. Even this morning, a day after the deed was done, there is no press release detailing the cutbacks on the corporate website. This not only causes confusion both inside the newsroom and out, but it fertilizes the rumor weeds that spread.

The only corporate comment has come from Renee Mutchnik, a spokeswoman for the Baltimore Sun Media Group, who said: "We're going to become a 24-hour, local news-gathering media company so we can more effectively gather content and distribute it among our different platforms -- print, online and mobile.

"As everyone knows, more and more readers are moving online, and advertisers are following them.

"This is our plan for success, not just survival."

But there are no details on that plan. Are they going to shut down the print product? If not, how do they expect to produce a quality print product with so few people? Will you continue to be a news organization, or will you shift to an information service? Are there plans to beef up the website? There are also rumors of Tribune shifting personnel to Chicago, any truth to that?

By the way, there was no definitive answer to the number of people laid off. At various times throughout the day media reports had it at 15, then 58, later 60, and finally 61. This is roughly 29 percent of the 205 editorial staff. Some were notified on Tuesday, others Wednesday.

Meanwhile, a Washington-Baltimore Newspaper Guild memo states that in addition to the editorial layoffs, The Sun has laid off seven employees in other departments including advertising and customer service.

For the record then, 61 people from editorial and seven from the business unit have been dismissed, as best as anyone can tell.

"It's stunning, just the breadth of them across the board," The Sun quoted Angie Kuhl, the paper's unit chairwoman for the Guild, which represents 148 newsroom workers, including 40 who were laid off Wednesday. "They are clearly trying to move to be an information producer, not a newspaper publisher. It is a flattening of the newsroom," Kuhl told Editor & Publisher's Joe Strupp.

The notifications to staffers were a joke. Some got word on Tuesday, others on Wednesday. Four journalists covering the O's-Angels baseball game were notified by phone, as documented by Bill Plunkett of the Orange County Register.

(Tough times in the newspaper biz. Two writers for the Baltimore Sun in the press box here got the news — by phone during the game — that they had been laid off in the latest round of cost-cutting. Stay classy, Baltimore Sun management.)

(UPDATE: Make that three reporters and a photographer axed by the Sun during the game.)

It wouldn't be so bad if the O's were away, but they were playing in downtown Baltimore. Notifying the employees before going to the ballpark wouldn't have been too much to ask, would it? I certainly hope they did not file a story.

David Ettlin, writing on his blog "The Real Muck," gives a graphic minute-by-minute account of the Tuesday-Wednesday Massacre, including this tidbit of one staffer getting the news. Go to his piece, it's a great read:
Ellie Baublitz, who put in 22 years and four months as a Sun editorial assistant after a few years as a community news freelancer, wore a spritely yellow outfit to work Wednesday, to “cheer people up” -- but having heard from a newsroom confidant of the Tuesday Night Massacre, she came prepared.

“I stuffed two shopping bags into my briefcase, just in case I needed them.”

About 2 p.m., as the newsroom awaited an expected announcement, Ellie and fellow editorial assistant Fay Lande were summoned by a top editor into a glass-windowed conference room overlooking the newsroom and told of their layoffs.

Ellie came out in tears and, by one reporter’s account, “That really broke the newsroom up, when Ellie broke up.”

In a telephone chat Wednesday night, Ellie acknowledged the account as “pretty accurate,” and recounted how colleagues cheered and applauded staffers leaving the building after getting the same fate.

“It was pretty ugly down there,” Ellie said. “They probably did me a favor. The last couple of years have been really bad.”

There are so many better ways to handle such an awful situation. I know from my own experience that managers take no joy or glee going through this process. But there are steps they can take to make sure people are treated with respect, and that information is properly and clearly communicated. (Communication at a newspaper, who would have thought of that?)

1. Notify those affected in person on the same day. Notify them in private, not in glass window offices so everyone can watch (as described by Ettlin above). Give them the dignity of saying good-bye to their co-workers if they so choose.

2. Gather the remaining staff so the chief executive officer can tell them face-to-face. Thank the leaving staff publicly for their fine service; emphasis that this was a business decision and does not reflect their integrity or hard work. Describe the vision for the organization's future and what the company's goals are as it moves forward. Invite questions and answer them honestly.

3. Issue a press release detailing how many people were laid off, what departments they came from, and how many are left. Thank the departing employees, and include language about the future of the organization. This eliminates the rumors and water-cooler chatter.

Wednesday, February 25, 2009

Hartford Courant Lays Off 100 in Mardi Gras Massacre

Hartford Courant Publisher Stephen D. Carver announced today that the Tribune Co. newspaper will lay off about 100 people as it faces declining advertising revenues.

An announcement posted on its website today said that the cuts include about 30 employees in news, bringing the news staff to 135 -- just over half the number The Courant had at the start of 2008. Most employees were being notified this week, according to Carver.

The layoffs are mostly at The Courant but also at subsidiaries New Mass Media, which comprises the chain of Advocate weeklies, and Valu Mail, the direct-mail business owned by The Courant.

Chicago-based Tribune Co. is operating under bankruptcy protection as a result the media company's $13 billion in debt, most of which Tribune took on late in 2007 when it became a private business. Tribune had a series of layoffs in 2008, but the current round of cuts at The Courant was forced by business conditions here, Carver said, rather than the bankruptcy.

Company-wide, Tribune is in a wage freeze announced to employees earlier this month. News space, which was cut back last summer, will remain as it is, Carver said. The Courant remains the largest news organization covering Connecticut.

"I wanted to get us into an environment where we could focus on our readers and advertisers going forward, and focus on growing the business," Carver said. "We're going to perform at the level we've been performing."

Paul Bass of the New Haven Independent had more details than the Courant story:
Connecticut’s “oldest continually published daily newspaper” (for now) axed its D.C. bureau, half of its remaining two-person state Capitol staff, and its environmental reporter as part of what one veteran dubbed “The Mardi Gras Massacre.”

Those were among the casualties of the latest wave of layoffs at the Hartford Courant.

Mark Pazniokas, one of two reporters based at the state Capitol, has worked at the paper for 24 years and was its senior political correspondent. Dave Funkhouser held down the environmental beat.

Jesse Hamilton was the last reporter based in the paper’s D.C. bureau.

They and other reporters were notified of their layoffs in phone calls Tuesday night. They will receive one week’s severance for every year worked, plus an extra week.

Tuesday, February 3, 2009

Tribune Lawyer Tells Judge the Chain Expects "A Number of Layoffs"

There are dark clouds within the Tribune company once again as a lawyer representing the giant newspaper chain told a Delaware bankruptcy judge today that he expects "a number of layoffs" in the future. The judge is expected to approve the Tribune Co.'s request to implement a new severance plan for nonunion employees.

Randall Chase of The Associated Press wrote today:

Tribune attorneys said at a hearing Tuesday that they will submit a modified order for Judge Kevin Carey to sign that would provide for notice to the creditors committee and the U.S. trustee in the case before any payments are made to officers or other insiders.

"We don't intend to give them more than what the market bears at this time," Tribune attorney Kevin Lantry assured the judge.

Lantry said the company anticipates "a number of layoffs" this year, but he did not provide a figure, or details on how much money the severance program might involve.

"I hate to, in a public forum, articulate anticipated layoffs," explained Lantry, who said after the hearing that the situation is fluid and that the company's current projections could very well change.

Carey signaled that he was willing to authorize the new severance plan, as long as it included proper notice regarding payments to insiders.

"What you're asking for is a prospective blanket approval of such payments," he told Lantry. "It seems to me it's got to be conditioned on some process that lets others know what the debtor is doing."

Tribune is my former employer and it currently employs about 14,000 full-time workers and 2,450 part-timers. It owns the Los Angeles Times, Chicago Tribune, The (Baltimore) Sun, The Hartford Courant and other dailies, as well as 23 television stations. It sought bankruptcy protection in December because of dwindling advertising revenues and a debt load of $13 billion.