Tribune Restructures to Spin Off the Los Angeles Times

Tribune Co., the corporate parent of the Los Angeles Times, is streamlining its corporate structure for the possible sale of newspaper and broadcast units, according to ChicagoBusiness.com.

For years the company operated a massive printing plant and newsroom at 20000 Prairie Street in Chatsworth. The building is now occupied by MGA Entertainment, a toy company.

Tribune Co., which is in bankruptcy, is setting up eight new limited liability companies for its main English-language papers.

Tribune anticipates exiting from bankruptcy by the end of the year with control of the company passing to new creditor-owners. Those firms may be eager to convert assets to cash by selling off the media properties.

“This structure may make the assets more attractive to a potential buyer and makes it a cleaner transaction by putting the good assets in one place and carving out legacy costs,” said Dan Wikel, a restructuring consultant and managing director for Chicago-based Huron Consulting Group.

Tribune is also moving the rights to the masthead for the Los Angeles Times,  from a unit called Tribune License Inc. to a new limited liability company created for the paper.

ChicagoBusiness.com reported: "Los Angeles billionaire businessman Eli Broad said recently he remains interested in joining others to buy the Los Angeles Times and restore local ownership. In an interview with the paper this month, he said he has talked with others about forming a partnership of foundations or wealthy family purchasers, but he declined to specify who they are."

You can read the whole story here.

Follow us on Twitter | Like us on Facebook | Sign up for our daily newsletter