Tribune to employees: Stay focused, don't be distracted by fraud reports

From: Tribune Communications
Sent: Tuesday, July 27, 2010 2:42 PM
Subject: Message from Randy and Gerry/Developments in our Chapter 11 Process

As you know by now, the independent examiner appointed by the bankruptcy court to review our 2007 going-private transaction filed his report late yesterday. We have reviewed the summary conclusions contained in the report and from what we know now, we agree with some of his assessments and disagree with others. Since much of the more than 700-page document remains redacted, including the analysis on which the examiner bases many of his conclusions, we think it is premature to comment further about the report.

We continue to believe that the company’s Plan of Restructuring, which was the result of many months of negotiation, remains the best solution for resolving issues among our various creditor groups. Voting on the plan is to conclude August 6, and we are continuing to move forward toward the confirmation hearing that is scheduled for August 30. Most important, while there are a lot of variables, we remain optimistic that the company can emerge from Chapter 11 before the end of the year.

The examiner's report has gotten some media attention, which we expected. Nonetheless, it is important that we all stay focused on the fundamentals and the things we need to do to continue improving the performance of our media businesses. Our financial results were very strong in the first-half of the year and we can’t let up now—there is still a lot of opportunity out there. As we enter what we hope are the last stages of the Chapter 11 process, try not to be distracted by the media attention it may receive.

Thanks for your effort and energy, your best thinking, and your dedication.

[CEO] Randy [Michaels] and [COO] Gerry [Spector]

SOURCE: Jim Romenesko