Tribune's cash grows to $1.5 billion on April profit

Newspaper publisher Tribune Co. filed an operating report yesterday for a month ended April 25 showing net income of $26.9 million on revenue of $232 million. Operating income for the month was $25.6 million. Reorganization items were $7.9 million.

Cash grew by $34 million in the period, ending with a $1.5 billion cash balance on April 25.

Tribune also filed another revision to the disclosure statement explaining the proposed Chapter 11 plan. The hearing for approval of the disclosure statement resumes May 28.

The new version of the disclosure statement tells creditors the company plans to implement a bonus program for more than 30 executives that could pay about $15 million total. Last year, the bankruptcy judge in Delaware declined to approve bonuses while suggesting that Tribune include the program in the reorganization plan.

At a hearing last week, the bankruptcy judge told the company to modify the disclosure statement by adding details about the business and exit financing. The disclosure materials must also include statements by creditor groups supporting and opposing the plan and the settlement it includes. With the report of the examiner due July 12, creditors will have an opportunity to take the examiner's opinion into consideration before voting for the plan is completed on July 30.

The examiner is analyzing the strength of creditors' claims that the $13.8 billion leveraged buyout led by Sam Zell in December 2007 included fraudulent transfers.

Tribune filed a proposed Chapter 11 plan in April to implement a settlement of the LBO claims negotiated with some creditors. Holders of $3.6 billion in pre-bankruptcy secured debt immediately came out opposing the plan and the settlement.

Tribune is the second-largest newspaper publisher in the U.S. It listed $13 billion in debt for borrowed money and assets of $7.6 billion in the Chapter 11 reorganization begun in December 2008. It owns the Chicago Tribune, Los Angeles Times, six other newspapers and 23 television stations.

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