Tribune Co., parent of The Baltimore Sun, has hired bankruptcy advisors. The company is struggling under billions in debt as a result of last December's $8 billion buyout controlled by Sam Zell. I'd be surprised if they file anytime soon. Newspaper creditors in Philadelphia and elsewhere have shown forebearance even though debtors are in default. Creditors know these are extraordinary times. Tribune has tons of assets (Chicago Cubs, newspapers & TV stations) it could sell in any normal market to satisfy debt obligations. But nobody can get a loan to buy them. That will eventually change.

From NYT:

The Tribune Company, the newspaper chain that owns The Chicago Tribune and The Los Angeles Times, 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 is in danger of falling below the cash flow required under its agreement with its bondholders, but it is not clear how seriously Tribune is thinking about seeking bankruptcy protection. Analysts and bankruptcy experts say that the hiring of advisers, including Lazard and Sidley Austin, one of the company’s longtime law firms, could be a just-in-case move, or a bargaining tactic. The company would not comment on Sunday.