The Tribune Company could be heading for bankruptcy:
The Tribune Company, which is in danger of falling below the cash flow required under its bonds, is trying to negotiate new terms with its creditors and has hired advisers for a possible bankruptcy filing, according to people briefed on the matter . . .
. . . Tribune has been trying to sell the Chicago Cubs baseball team; the team’s stadium, Wrigley Field; and the company’s share in a regional cable sports network. Such a deal, which could bring the company more than $1 billion, has been a crucial part of its strategy since last year.
I’m guessing Jim Hendry knew this, which would explain the decision to not go after Peavy. After all, if they had done the deal and then filed for Chapter 11, a bankruptcy trustee would have to take possession of Josh Vitters, who would be legally classified as a preference, after which he would be divided up and distributed to the Trib’s creditors in proportion to the outstanding debts each is owed.
Nasty business, bankruptcy.