Comments on: Tribune Bankruptcy the Leading Edge of the Private Equity Bust http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/ Firedoglake weblog Tue, 24 Nov 2009 18:48:09 -0600 http://wordpress.org/?v=2.8.6 hourly 1 By: masaccio http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1754026 masaccio Wed, 10 Dec 2008 02:20:43 +0000 http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1754026 <p>The gross notional credit default swap position on the Tribune Company is $19 bn. The net notional is $1.5bn. It will be interesting to find out the value of the debt, but I bet that the holders (described below) will simply hand it over for payments equal to the face value. That leaves $11bn or so that has to be settled by cash payment instead of physical settlement.</p> <p>The asset value of the company on its schedules is less than $7.6bn, exclusive of the Cubs and Wrigley Field. If we give them the $7.6bn and add $1bn for the Cubs, there should be enough to pay the senior debt, so it should have enough value to pay off the debt. Maybe this one won’t be a real problem, and if collateral has been posted, the bankruptcy will free up a bunch of collateral.</p> <p>As the the big debt, the loan was made by JP Morgan Chase, and <a href="http://www.finance-commerce.com/article.cfm/2008/12/09/Tribune-seeks-bankruptcy-protection-from-creditors" rel="nofollow">syndicated to other big lenders</a>:<br /></p><blockquote>Tribune’s biggest unsecured creditors are its lenders, led by JPMorgan Chase Bank and Merrill Lynch Capital Corp. JPMorgan is the administrator of $8.57 billion in senior debt and holder of about $1.05 billion of that. Others include Deutsche Bank AG, New York-based investment management firm Angelo Gordon & Co. LP, hedge fund Highland Capital Management LP and Goldman Sachs Group Inc.</blockquote> The gross notional credit default swap position on the Tribune Company is $19 bn. The net notional is $1.5bn. It will be interesting to find out the value of the debt, but I bet that the holders (described below) will simply hand it over for payments equal to the face value. That leaves $11bn or so that has to be settled by cash payment instead of physical settlement.

The asset value of the company on its schedules is less than $7.6bn, exclusive of the Cubs and Wrigley Field. If we give them the $7.6bn and add $1bn for the Cubs, there should be enough to pay the senior debt, so it should have enough value to pay off the debt. Maybe this one won’t be a real problem, and if collateral has been posted, the bankruptcy will free up a bunch of collateral.

As the the big debt, the loan was made by JP Morgan Chase, and syndicated to other big lenders:

Tribune’s biggest unsecured creditors are its lenders, led by JPMorgan Chase Bank and Merrill Lynch Capital Corp. JPMorgan is the administrator of $8.57 billion in senior debt and holder of about $1.05 billion of that. Others include Deutsche Bank AG, New York-based investment management firm Angelo Gordon & Co. LP, hedge fund Highland Capital Management LP and Goldman Sachs Group Inc.

]]> By: MrTentacle http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753795 MrTentacle Tue, 09 Dec 2008 21:34:12 +0000 http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753795 <p>Yes, Eastern finally succumbed to gross mismanagement by corporate raider Frank Lorenzo, a huge debt burden, and crippling strikes that resulted from Lorenzo’s union-busting attempta.</p> Yes, Eastern finally succumbed to gross mismanagement by corporate raider Frank Lorenzo, a huge debt burden, and crippling strikes that resulted from Lorenzo’s union-busting attempta.

]]> By: Synoia http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753794 Synoia Tue, 09 Dec 2008 21:31:19 +0000 http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753794 <p>Easter Airlines was shut down by a machinists strike. After about a year of non-operation, they went bankrupt.</p> Easter Airlines was shut down by a machinists strike. After about a year of non-operation, they went bankrupt.

]]> By: BitterScribe http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753792 BitterScribe Tue, 09 Dec 2008 21:27:51 +0000 http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753792 <p>Oh, we’re not exactly surprised, Hugh. And considering what a hash this guy has made of state government, it’s not 100% bad news, either.</p> <p>My biggest regret is that the Obama haters will have a fresh source of venom, now that this birth certificate nonsense is going nowhere.</p> Oh, we’re not exactly surprised, Hugh. And considering what a hash this guy has made of state government, it’s not 100% bad news, either.

My biggest regret is that the Obama haters will have a fresh source of venom, now that this birth certificate nonsense is going nowhere.

]]> By: ThingsComeUndone http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753780 ThingsComeUndone Tue, 09 Dec 2008 20:53:51 +0000 http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753780 <p>OT how much would pent up demand help the economy if banks started lending again to consumers? I mean they have the money to lend right? They are buying other banks so they have the money right?</p> OT how much would pent up demand help the economy if banks started lending again to consumers? I mean they have the money to lend right? They are buying other banks so they have the money right?

]]> By: Blub http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753776 Blub Tue, 09 Dec 2008 20:51:17 +0000 http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753776 <p>I don’t think there’s anyplace on the bailout application form to attach a memo :-P</p> <p><a href="http://mtblog.vanityfair.com/online/politics/2008/12/01/federalbailout.gif" rel="nofollow">http://mtblog.vanityfair.com/o.....ailout.gif</a></p> I don’t think there’s anyplace on the bailout application form to attach a memo :-P

http://mtblog.vanityfair.com/o…..ailout.gif

]]> By: ThingsComeUndone http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753774 ThingsComeUndone Tue, 09 Dec 2008 20:48:21 +0000 http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753774 <p>Do you have the memo we might need it later if the GOP wants to bail out the Trib.</p> Do you have the memo we might need it later if the GOP wants to bail out the Trib.

]]> By: BitterScribe http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753773 BitterScribe Tue, 09 Dec 2008 20:47:48 +0000 http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753773 <p>Another great newspaper ruined by another greedy douchebag. What a shame.</p> Another great newspaper ruined by another greedy douchebag. What a shame.

]]> By: ThingsComeUndone http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753772 ThingsComeUndone Tue, 09 Dec 2008 20:47:16 +0000 http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753772 <p>Hmmm Are GOP businesses more likely to be in trouble now because they bought the kool aide?<br /> If we remove fake Dem business like the ones Obama’s economic team worked for and look at business that try to be nice to workers, the environment etc and compare that with business that practiced what Bush Preached and or supported the GOP what would we find?</p> Hmmm Are GOP businesses more likely to be in trouble now because they bought the kool aide?
If we remove fake Dem business like the ones Obama’s economic team worked for and look at business that try to be nice to workers, the environment etc and compare that with business that practiced what Bush Preached and or supported the GOP what would we find?

]]> By: PLovering http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753767 PLovering Tue, 09 Dec 2008 20:41:05 +0000 http://firedoglake.com/2008/12/09/tribune-bankruptcy-the-leading-edge-of-the-private-equity-bust/#comment-1753767 <p>Shortly after Zell took over the Tribune, memo went out to employees covering sexual harassment.</p> <p>Say, you are on your own people. Don’t bother me with details.</p> Shortly after Zell took over the Tribune, memo went out to employees covering sexual harassment.

Say, you are on your own people. Don’t bother me with details.

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