Tribune reports $6.37 million net profit in July

Newspaper publisher Tribune Co. reported net income of $6.37 million in July on revenue of $272.8 million. Operating income in the month was $23 million.

Net income for the month would have been higher were it not for $11.29 million in reorganization costs. Tribune ended July with a $1.6 billion cash balance.

Tribune met yesterday with representatives of creditor groups, presumably discussing the new reorganization plan that may be filed today. No one in attendance would talk about what took place at the meeting.

Until yesterday, Tribune had been excluded from discussions among creditor groups about a new plan structure.

After the examiner issued a report concluding there was some likelihood that the second phase of the leveraged buyout in December 2007 could be attacked successfully as a constructively fraudulent transfer, some previously supporting creditors withdrew approval of the plan. As a result, Tribune canceled the confirmation hearing that had been set for Aug. 30 to approve the plan.

The examiner found less likelihood that the first phase of the transaction, in May 2007, could be unraveled as a fraudulent transfer. For a summary of some of the examiner's conclusions, click here for the July 27 Bloomberg bankruptcy report.

Tribune's now-withdrawn Chapter 11 plan would have settled claims that the $13.7 billion leveraged buyout led by Sam Zell contained fraudulent transfers. The plan was opposed by holders of $3.6 billion in debt. For details on the plan, the proposed settlement, and the parties' arguments, click here for the April 13 Bloomberg bankruptcy report.

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).