On the heels of announcing steep layoffs at the Los Angeles Times, Tribune Co. said Thursday it had arranged a $300 million bank loan with Barclays Bank, most of which would be used to pay off part of an existing loan.
The Barclays transaction was described as an “asset-backed commercial paper facility,” meaning it’s backed by accounts receivable money that Tribune is owed. The arrangement with Barclays allows Tribune to get a cash infusion pronto without having to wait for those bills to come due.
Still, it’s a sign of the cash crunch at the debt-laden Chicago-based newspaper and TV station owner. The buyout of Tribune last December by real estate mogul Sam Zell under an employee-ownership structure left the company with more than $12 billion in debt.
Read the full Variety.com story