LA Times, KTLA Owner Tribune Files for Bankruptcy

The LA Times building in downtown | Photo by jimw via Flickr

Following yesterday's speculation, Tribune Co. has just filed for bankruptcy protection. The Associated Press reports (via abc7.com):

The owner of the Chicago Tribune, the Los Angeles Times, the Chicago Cubs and other properties has $13 billion in debt.

Severe reductions in advertising this year because of the recession has put pressure on the company. Most of its debt comes from the complex transaction in which the company was taken private by real estate mogul Sam Zell last year.

Although the next major principal payment isn't due until June, analysts say Tribune has been in danger of missing lender-imposed financial targets.