Are the Chicago Cubs going bankrupt?
By David Leibowitz, Illinois and Wisconsin Bankruptcy Attorney on Jul 13, 2009 in General Bankruptcy Information
It’s been over 100 years since the Cubs won the World Series. And now, we hear they may be going bankrupt! Why?
The parent company, Tribune Corporation, like many other newspapers all over the United States, is in bankruptcy. Owner Sam Zell acquired Tribune Corporation a few years ago in a very expensive deal and took on billions in debt to finance it. Now, newspapers are losing money and Zell can’t afford to pay the interest on the debt. So Tribune Corporation is in bankruptcy and it has to sell the crown jewel – the Chicago Cubs – in order to pay back some of the debt.
Buyers of the Cubs are afraid that the Cubs may be “infected” with the Tribune Corporation’s debt. They want a clean break.
So Bloomberg now reports that the Chicago Cubs may elect to file an “in and out” bankruptcy in order to “cleanse” it of the Tribune Corporation taint.
Why am I writing about this here? Bankruptcy is a financial tool – a remedy for solving problems.
If bankruptcy is good enough for GM and Chrysler, the Tribune and even the Cubs, then it may well be the right remedy for you if you face foreclosure, job loss, medical expense, divorce, foreclosure or other life calamities. Don’t let people make you feel bad for exercising your financial rights just like big money does every day.
Lakelaw helps people and businesses in bankrutpcy matters in Illinois and Wisconsin.
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