Tribune proposes bonuses for 640 workers

Newspaper publisher Tribune Co. is proposing a 2010 bonus program covering 640 employees, including top management. If operating cash flow is 132 percent of target, the bonus pool would be $42.9 million, including $5.7 million for the highest executives.

The program is scheduled for consideration by the bankruptcy judge at a June 16 hearing.

If targeted operating cash flow is achieved, the bonus pool will be $30.8 million, with $2.2 million for top executives.

Tribune filed a proposed Chapter 11 plan in April to implement a settlement negotiated with some creditors. Holders of $3.6 billion in pre-bankruptcy secured debt immediately came out opposing the plan and the settlement.A hearing will be held tomorrow to consider approving a disclosure statement explaining the plan.

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 Delaware (Wilmington).