Baltimore Sun

Baltimore Sun parent Tribune Co. filed for voluntary bankruptcy protection under Chapter 11 Monday, in a bid to restructure crippling debt that the company said became unsustainable in a recession and the worst advertising climate in decades.

The media giant, owner of The Sun and community newspapers that make up the Baltimore Sun Media Group, said it has sufficient cash to keep operating its group of newspapers and television stations, among them the Chicago Tribune and the Los Angeles Times.

Tribune also owns the Chicago Cubs baseball team, which is for sale.

Baltimore Sun Publisher Timothy E. Ryan said in a letter to readers that there will be no interruption to its print publications or Web sites. In a memo to employees, Ryan said, “We will continue to serve the Baltimore market as we have for the past 171 years.”

Sam Zell, chairman and chief executive of Tribune Co., said the bankruptcy filing was “about relieving the pressure on the company from too much debt.”

“We believe we will be able to operate normally,” Zell said in a conference call Monday with Tribune reporters. “By virtue of the filing today, we will suspend making interest payments, which should give us added flexibility in order to continue moving forward.”

In its filing Monday in U.S. Bankruptcy Court in Delaware, Tribune listed assets of $7.6 billion and liabilities of nearly $13 billion owed to more than 1,000 creditors, including lender JP Morgan Chase Bank, which is the administrator for $8.5 billion in debt. Other unsecured creditors include Merrill Lynch Capital Corp., Warner Bros. Television and Paramount Pictures Corp.

WBAL.com

Businessman Ted Venetoulis says his group of local investors is still interested in buying The Baltimore Sun, and he’s not sure how Monday’s bankruptcy filing by Tribune Company will affect his group’s bid.

Venetoulis says Tribune is aware of his group’s interest, but he hasn’t heard anything from the company recently. Nor does he expect a possible sale to come together anytime soon, now that Tribune has sought Chapter 11 bankruptcy protection.

He says the filing could work both ways. It could either bog down the process or speed it up in the interest of liquidation of assets.

Venetoulis is a publisher and former Baltimore County executive. He believes the paper would be better off under local ownership despite the fact that media is changing rapidly these days.