Tribune Debt Default Risk Tops 50 Percent

By: E&P Staff

Bloomberg is reporting that the Tribune company may miss interest payments on some of the $13 billion in debt it will have after real estate investor Sam Zell buys the company, trading in the company’s credit-default swaps shows.

Since the first step of the sale was completed in May, prices of the swaps, financial contracts used to speculate on a company’s ability to repay debt, have jumped $331,000.

Tribune reported on June 20 that revenue fell 11 percent in May and was down 5.6 percent for the year to $2.02 billion. The company reports second-quarter results on July 25.

The whole story can be read here.

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