On Mon, 08 Dec 2008 12:52:58 -0800, Larry Jaques
wrote:
Question: How does some entity which is $3.5 BILLION in debt borrow an
extra $8.3B for a merger?!?
--snippage--
beneficiaries, and total assets of over $800 million. The Tribune
Company Master Retirement Savings Trust had over $2.2 billion in
assets for the 2006 plan year listed on Schedule H of Form 5500.
A really interesting part of this litigation to watch will be the
ultimate attorneys fees awarded when this litigation ends.
-------------
Information now surfacing indicates Zell got control of the
Tribune company and its pension funds/assets worth 8.2 billion
for an investment of 300 million.
Debt is now 13 billion and assets down to 7.6 billion, mostly in
the form of non-liquid assets.
Note that the Tribune [the company] was still profitable, just
not profitable *ENOUGH*. Also note that the pension funds,
"invested" in the sham ESOP were not guaranteed by the PBGC and
are just gone [apparently into Zell's pockets].
We are looking at the "evaporation" of about 11 billion dollars
[equity + new debt] from a company under Zell's control in less
than a year.
How gross does it have to get before its criminal?
==============
How Zell Killed Tribune
Stephane Fitch, 12.08.08, 07:42 PM EST
The ''grave dancer'' of real estate becomes the ''grave digger''
of the newspaper industry.
When Samuel Zell outbid two other billionaires, Eli Broad and
Ronald Burkle, for Tribune Co. last year, he was hailed as a
dealmaker.
For just thinnest possible sliver of equity--some $300
million--he landed an $8.2 billion empire featuring the Chicago
Cubs, a host of television stations and two of the most important
newspapers in America: The Chicago Tribune and Los Angeles Times.
Article Controls
"I am delighted to be associated with Tribune Company, which I
believe is a world-class publishing and broadcasting enterprise,"
Zell said back in April 2007, announcing the deal. "As a
long-term investor, I look forward to partnering with the
management and employees as we build on the great heritage of
Tribune Company."
Monday was a different story. Tribune declared bankruptcy in
Delaware. Against assets allegedly worth $7.6 billion, Tribune
Co. owes $13 billion. The "grave dancer" of real estate
development was now the "grave digger" of the newspaper world.
Bad economy or not, if it wasn't for Zell and the enormous debt
load he packed on the company, Tribune Co. would be trundling
along profitably. It hauled in operating cash flow--which is net
before taxes, depreciation, amortization and interest--of $90
million on $1 billion in revenue in the third quarter. In the six
quarters before that, Tribune Co. was hauling in $200 million to
$270 million per quarter in cash flow.
snip
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for complete article click on
http://www.forbes.com/home/2008/12/0..._1208zell.html
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).