Harold Meyerson reports that Sam Zell used a $225 million promissory note to buy the Chicago Tribune. The sales price of the Tribune was $315 million. The employee stock ownership plans are at a 100 percent risk. Tribune employees will see their retirement packages disappear. This is the media version of Enron.
The Tribune management told staff "all ongoing severance payments have been discontinued." The company has laid off staff. Zell is telling them they are stiffed.
Zell bought the Tribune in 2007 and filed for bankruptcy in 2008. That is quite an accomplishment.
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