Tribune expects to grow cash in '09 to $509 million

Tribune Co. in a filing last week with the Bankruptcy Court projected ending 2009 with $509 million cash.

The report by the second-largest newspaper publisher in the U.S. said the company entered Chapter 11 on Dec. 8 with $325 million cash. Liquidity will increase in early 2009, topping out at $596 million in February.

Separately, Tribune filed a motion asking for Bankruptcy Court authority to pay $550,000 in contributions to the pension plans for union workers covering days worked before the Chapter 11 filing. The company said the payments are necessary to keep peace with labor.

Tribune also wants authority to make pension plan contributions going forward.

In another motion, Tribune is seeking permission to pay retention bonuses to 33 workers at television stations in Denver and St. Louis who will lose their jobs by March as the result of a shared services agreement with another broadcaster. The total cost will be $384,000. None of the workers fall into the category of “insiders” for whom retention bonuses are prohibited by bankruptcy law, according to the company.

The hearings on the motions will be held Jan. 15.

Tribune, acquired just under one year ago in a $13.8 billion leveraged buyout led by Sam Zell, listed $13 billion in debt for borrowed money and assets of $7.6 billion. Tribune owns the Chicago Tribune, Los Angeles Times, six other newspapers, 23 television stations, the Chicago Cubs professional baseball team, and Wrigley Field in Chicago. The team and their field, neither in bankruptcy, are for sale.

The case is In re Tribune Co., 08-13141, U.S. Bankruptcy Court, District Delaware (Wilmington).