Tribune Parent Offers to Finance Media Firm in Chapter 11

Tribune Publishing, which owns the L.A. Times, offered to loan $3 million to the bankrupt owner of a rival Southern California newspaper, a move that could set the stage for a bidding war.
Tribune Publishing, which owns the L.A. Times, offered to loan $3 million to the bankrupt owner of a rival Southern California newspaper, a move that could set the stage for a bidding war.
Photo By: Bloomberg

The owner of the Chicago Tribune and the Los Angeles Times offered last week to loan $3 million to the bankrupt owner of a rival Southern California newspaper, a move that could set the stage for a bidding war.

Chicago-based Tribune Publishing told a federal bankruptcy judge it's willing to loan Freedom Communications the money for day-to-day operations, with the money counting in any bid Tribune might make for Freedom's assets.

Freedom, which owns the Orange County Register and the Riverside Press-Enterprise, filed for Chapter 11 bankruptcy protection Nov. 1. It lost more than $40 million in two years during a rapid expansion under former CEO Aaron Kushner, who started newspapers in Los Angeles and Long Beach that were later closed.

Tribune, which also owns the San Diego Union-Tribune and Baltimore Sun, is a Freedom creditor. Another creditor, hedge fund Silver Point Capital, also is offering $3 million in financing to Freedom, according to the Times.

Tribune lawyer Jeremy Rosenthal objected to Silver Point's offer, telling U.S. Bankruptcy Court Judge Mark S. Wallace that Tribune wants an "opportunity to bid at a fair, open, transparent proceeding."

Tribune spokesman Matthew Hutchison declined to comment further on the company's plans. A Silver Point spokesman declined to comment.

The Times reported that Tribune's offer is the strongest indication yet that the company may consider buying the Register and the Press-Enterprise.

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