The Chicago-based Tribune Co. which owns the Los Angeles Times is considering filing for bankruptcy protection as soon as this week, it was reported on Sunday.

The company, which also owns the Chicago Tribune and Chicago Cubs baseball team, is preparing for the possibility of filing for bankruptcy as it tries to renegotiate 12 billion dollars in debt with banks and other creditors, a Tribune Co. official told the Los Angeles Times.

Meanwhile, the Wall Street Journal reported that the company has talked with lenders about restructuring its debt and hired the investment bank Lazard Ltd. as its financial advisor and the law firm Sidley Austin as a legal advisor as it explores the possibility of filing for Chapter 11 bankruptcy protection.

The economic recession has hurt Tribune and other media companies that are already struggling as more advertising dollars are being spent on the Internet. The economic downturn has also made it harder for the company to sell the Cubs or other assets to meet accelerated debt payments due next year, The Times reported.

"Revenue declines have been dramatically worse, even over the last couple of weeks. It's just really rough," a Tribune executive who asked not to be identified told The Times. "A number of advertisers just don't have the money to spend right now."

Money that was supposed to come from selling off assets was to help Tribune make a 512-million-dollar debt payment in June.

"Getting a deal done on the Cubs or on a number of other properties is extremely difficult, the Tribune executive told The Times. Other sources of capital and debt have been significantly hampered. Layer on that a business that has been in decline for years and a failing economy, and it's a perfect storm."

(Xinhua News Agency December 8, 2008)