December 9, 2008
Dear TMS Creator:
As you are no doubt aware, Tribune Co. announced yesterday its strategic decision to restructure the company’s debt and to file for protection under Chapter 11 of the U.S. Bankruptcy Code. This was necessary to strengthen Tribune’s financial foundation for the future.
The decision was voluntary and was made in light of dramatic and unexpected operating conditions encountered this year – a precipitous decline in revenue and a tough economy coupled with a credit crisis that made supporting the company’s debt extremely difficult.
Regarding Tribune Media Services specifically, while the news no doubt raises many questions in your mind, I want to reassure you that we are not going out of business and that we will continue to operate as usual while the company restructures.
I would emphasize that we remain a very healthy company with both strong revenue and cash flow.
We expect additional developments during the week and will keep you posted on any vital information. We thank you, as always, for your excellent work and want you to know that we have some exciting projects planned for 2009. We remain dedicated to our mission as a premiere content distribution and talent development enterprise in the media business. Please contact me if you have any questions.