If the Los Angeles Times owes you money, you might have to wait a long time. Publisher Eddy Hartenstein told the staff yesterday that the Chapter 11 filing freezes pending payments to freelancers, but said the paper will ask the Delaware judge to allow the commitments to be met. This year's hundreds of laid-off former employees have not heard those assurances and are fairly frantic to find out how long their severance payments will be interrupted. Hartenstein apparently said the Chapter 11 status could last six months to a year. By the way, he told the staff "town hall" meeting that the Times and the rest of Tribune's units remain profitable — this is about Sam Zell's debt load and inability to renegotiate his loans or sell properties like the Cubs.

Related: NPR's story on Tribune's bankruptcy, including Zell telling the Washington bureau a while ago that it was bloated and redundant. Audio

More: Business Week's analysis says Tribune staffers could be lucky the company crashed now rather than after they made several more years of contributions to the employee stock plan that Zell is playing with, given its potential loss of value. The story's lede: "If there is one thing Sam Zell foresaw correctly, it is this: The day after Zell announced he was buying Tribune for more than $8 billion, the real estate tycoon told Chicago Tribune reporters the deal would not change his lifestyle no matter what happened. But, he said, 'it's likely to change yours.' How right he was."

LAT
> | More
© 2003-2010   •  About LA Observed  •  Email the editor
Follow LAO
Kevin Roderick blog
11:55 PM Mon | Back home in Echo Park, the former director of communications for the National Endowment of the Arts talks about discovering that in politics, being right is no substitute for looking like you're right.
Mark Lacter, LA Biz Observed
5:13 PM Mon | NY Attorney General Andrew Cuomo has settled with two L.A. private equity firms in connection with an ongoing corruption probe.
1:06 PM Mon | Another down day
Sponsors
Jewish Journal logo
California Wellness Foundation
For information on becoming a sponsor, email the editor.
Sign up for email

Enter your email address:

Delivered by FeedBurner


Blogads Los Angeles network

Get RSS Feeds
of LA Observed
LA Observed publishes several Real Simple Syndication feeds for easy scanning of headlines. If you wish to subscribe to a feed, most popular RSS readers will do it for you. You can also enter the web address from the XML button below or click on a specific feed. For more help with RSS, try here or here.




Add to Google