More Tribunes, Lehmans likely in coming months

Marketwatch ^ | Dec. 8, 2008 6:30 p.m. EST | Russ Britt, MarketWatch

[Ernest_at_the_Beach]

Attorneys say conditions are ripe for continued wave of bankruptcy filings

LOS ANGELES (MarketWatch) -- Consider the Lehman Brothers bankruptcy a few months ago and Monday's filing by private-media giant Tribune Co. as shots across the bow, according to attorneys in the field.

A sour economy and tight credit market clearly are just the right ingredients to bring about a wave of bankruptcies, they say. Companies deeply in debt like Tribune are likely to be vulnerable as the troubled economy shakes out the strong from the weak, and they may fall into a situation where filing for bankruptcy protection is their only alternative.

"It seems like a lot of these companies were in a mode where they took on a lot of debt to acquire businesses," said David Hagen, a bankruptcy attorney in Woodland Hills, Calif. "I'm sure there's a ton more that are going to [file]."

The list of high-profile bankruptcies has grown quickly in a short time, even though a number of companies teetering on the brink have been helped by government aid.

[Ernest_at_the_Beach]

fyi

[abb]

Standby for another good one coming up!!

[Hardastarboard]

FTT, and the last two letters stand for “The Tribune”.

[Arguendo]

Good thing I’m going to work for one of the lawyers mentioned in the article. If there’s one stable job out there right now...

[upchuck]

IMHO, we’ve needed a knot jerked in our tails for the past 20 years.

Way too many people chasing the almighty dollar and doing a bunch of stupid stuff.

Hopefully, we’ll come out of this a leaner, stronger country.