Tough decisions await new Tribune Co. board

When the new seven-member Tribune Co. board officially convenes for the first time in the next few weeks, the group of media and entertainment executives will name the company's executive officers. Then comes the bigger job of assessing a diverse portfolio of broadcasting and publishing assets, with an eye toward maximizing the value of the Chicago-based media company.

Whether that means buying, selling or keeping the company intact is a story that will begin to unfold in 2013. But insiders say the new owners — senior creditors Oaktree Capital Management; Angelo, Gordon & Co.; and JPMorgan Chase & Co. — won't be in a rush to make those decisions after a contentious four-year journey through Chapter 11 bankruptcy left the reorganized company in strong financial shape.

"We're really looking forward to the opportunities and the possibilities with this asset base, with over $11 billion in debt removed from the balance sheet," said Ken Liang, a managing director at Oaktree and a member of the new board.

Tribune Co. plunged into bankruptcy in December 2008, saddled with $13 billion in debt from real estate investor Sam Zell's heavily leveraged buyout one year earlier. It emerged from bankruptcy Monday, relatively debt-free and generating cash.

The company owns 23 television stations, including WGN-Ch. 9; national cable channel WGN America; eight daily newspapers, including the Chicago Tribune; and other media assets, all of which the reorganization plan valued at $4.5 billion after cash distributions and new financing.

Tribune Co.'s biggest challenge has been declining revenue and cash flow as the advertisers that sustained it through the years defected to digital media alternatives. But 2012 was a slight improvement, likely boosted in part by election year ad spending in the company's broadcasting unit.

Data released Monday by the company showed that after several years of revenue declines, including a 3 percent drop to $3.1 billion in 2011, sales for the first three quarters of 2012 were flat at $2.3 billion compared with the same period a year earlier. Cash flow was even better: After dropping 12 percent in 2011 to about $370 million, cash flow increased 17 percent during the first three quarters of 2012, to $240 million.

Los Angeles-based investment firm Oaktree is the largest equity owner, with 23 percent of the company. All of Oaktree's distressed-debt holdings have a 10-year investment window, though the average is three or four years, executives said. That time frame usually includes an operating phase, which is where Tribune Co. now stands.

Some experts expect that phase to be relatively brief.

"I think they are temporary owners," said Marshall Sonenshine, chairman of New York banking firm Sonenshine Partners and a professor at Columbia University Business School. "They're not really there to be long-term shareholders of media assets."

While eventually selling the assets is part of Oaktree's distressed-debt investment strategy, it doesn't preclude a longer run, including strengthening the company through strategic acquisitions, Liang said. And with Tribune Co.'s balance sheet cleaned up, the timing of any asset sales will be at their discretion.

The new board also includes Tribune Co. CEO Eddy Hartenstein; Ross Levinsohn, who recently left as interim chief executive of Yahoo Inc.; Craig Jacobson, an entertainment lawyer; Peter Murphy, a former strategy executive at Walt Disney Co. and Caesars Entertainment; Bruce Karsh, Oaktree's president; and Peter Liguori, a former top television executive at Fox and Discovery, who is expected to be named CEO of Tribune Co.

The makeup of the board and the expected choice of Liguori as CEO suggests that broadcasting will be the operational focus for Tribune Co., according to insiders and media analysts. Priorities are expected to include developing WGN America, which lags cable networks such as FX and TBS in revenue, ratings and cash flow, analysts said.

"It's clear that, in a sense, we have a new Tribune media company, and it's going in a direction that many people thought it would be going," said media analyst Ken Doctor. "It makes the company entertainment leaning versus news leaning."

Meanwhile, in the face of digital competition and sagging industry revenue, Tribune Co.'s newspaper holdings have declined to $623 million in total value, according to financial adviser Lazard. While some analysts expect the newspapers to be bundled and delivered to an assortment of potential new owners — everyone from Rupert Murdoch to Warren Buffett has expressed interest in acquiring one or more of the nameplates — they are still profitable and may remain in the Tribune Co. fold for some time, according to insiders.

Tribune reporters Michael Oneal and Becky Yerak contributed.

rchannick@tribune.com

Twitter @RobertChannick

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Tribune Co. to emerge from bankruptcy today

The last day of 2012 is the first of a new era for Tribune Co.

After spending more than four years embroiled in a contentious Chapter 11 bankruptcy case, the reorganized Chicago-based media company emerged Monday under new owners and a newly appointed board, freed from its massive debt and facing an uncertain future.

Senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase & Co. are set to take control of Tribune Co.’s storied portfolio of publishing and broadcasting assets, including the Chicago Tribune, officials said.

It was an almost anticlimactic end to a long and painful chapter in Tribune Co.'s 165-year history. Late Sunday, the new Tribune Co. named its board of directors, filed notification with the Delaware bankruptcy court where the bulk of legal wrangling took place and declared its existence.

"It took a long time to get here," said Ken Liang, a managing director at Oaktree and a new member of the board. "It was a tough restructuring. We're pretty excited about the exit."

The new board also will include Tribune Co. CEO Eddy Hartenstein; Ross Levinsohn, who recently left as interim chief executive of Yahoo Inc.; Craig Jacobson, a well-known entertainment lawyer; Peter Murphy, a former strategy executive at Walt Disney Co. and Ceasars Entertainment; Bruce Karsh, Oaktree president; and Peter Liguori, a former top television executive at Fox and Discovery.

Liguori is expected to be named chief executive of Tribune Co. going forward.

Hartenstein, who is publisher of the Los Angeles Times, has been CEO of Tribune Co. since May 2011. He will remain in the role until the board convenes its first meeting in the next several weeks, where it will name the company’s executive officers, according to a company statement.

“Tribune will emerge from the bankruptcy process as a multi-media company with a great mix of profitable assets, strong brands in major markets and a much-improved capital structure,” Hartenstein said in the statement.

Tribune Co. owns 23 television stations, including WGN-Ch. 9, WGN America, eight daily newspapers and other media assets, all of which the reorganization plan valued at $4.5 billion after cash distributions and new financing. Eventually, all the assets are expected to be sold, according to the new owners.

They take the reins of a company that saw its worth essentially cut in half since 2007, when Chicago billionaire Sam Zell took it private in an $8.2 billion leveraged buyout. The rapid decline was mostly due to falling newspaper valuations in the face of digital competition. The anticipated hiring of Liguori suggests that broadcasting will be the operational focus going forward, according to several media analysts.

Los Angeles-based Oaktree, the largest shareholder, with about 23 percent of the equity, appointed two of seven board members. Both Angelo Gordon and JPMorgan have roughly a 9 percent stake and appointed one seat each. The three jointly appointed two more board members, with the final seat occupied by the chief executive.

Among the outgoing board members is Zell, whose deal was seen at the time as an alternative to the squabbles within Tribune Co. that threatened to break apart the then-publicly traded company. But the Great Recession and plummeting advertising revenues across all media, especially the struggling newspaper industry, made the company’s resulting $13 billion debt load untenable.

Tribune Co. filed for Chapter 11 bankruptcy protection in December 2008. Zell blamed a “perfect storm” of industry and economic forces. But the bankruptcy case turned on charges leveled by junior creditors that saddling the company with such a debt burden left it insolvent from the outset.

Led by an aggressive distressed debt fund called Aurelius Capital Management, the junior creditors pressed litigation that stretched out the case for three and a half years in a Delaware court before U.S. Bankruptcy Judge Kevin Carey confirmed the reorganization plan in July. An emergency appeal to stay that decision was dismissed by the 3rd U.S. Circuit Court of Appeals in September. In November, the Federal Communications Commission signed off on waivers needed to transfer Tribune Co.’s broadcast properties to the new ownership, clearing the last hurdle to its emergence from Chapter 11.

“Usually, bankruptcy cases like this take much less time and cost less money,” said Douglas Baird, a bankruptcy expert and law professor at the University of Chicago.

Baird said legal fees for most large corporate bankruptcies run 3 to 4 percent of the company’s total worth. The Tribune Co. case, which will likely cost the company more than $500 million in legal and other professional fees, was more than twice that percentage, due to both the extended litigation and the company’s declining valuation.

Before cash distributions and new financing, a 2012 analysis by financial adviser Lazard valued the broadcasting assets, including the TV stations, WGN-AM 720, CLTV and national cable channel WGN America, at $2.85 billion. Other strategic assets, such as online job site CareerBuilder and cable channel Food Network, are worth $2.26 billion.

Tribune Co.’s newspaper holdings, including the Tribune, Los Angeles Times and six other daily publications, have withered to $623 million in total value, according to Lazard. In 2006, entertainment mogul David Geffen made a $2 billion cash offer for the Los Angeles Times.

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Exclusive: Huawei partner offered embargoed HP gear to Iran

(Reuters) - A major Iranian partner of Huawei Technologies offered to sell at least 1.3 million euros worth of embargoed Hewlett-Packard computer equipment to Iran's largest mobile-phone operator in late 2010, documents show.

China's Huawei, the world's second largest telecommunications equipment maker, says neither it nor its partner, a private company registered in Hong Kong, ultimately provided the HP products to the telecom, Mobile Telecommunication Co of Iran, known as MCI. Nevertheless, the incident provides new evidence of how Chinese companies have been willing to help Iran evade trade sanctions.

The proposed deal also raises new questions about Shenzhen-based Huawei, which recently was criticized by the U.S. House Intelligence Committee for failing to "provide evidence to support its claims that it complies with all international sanctions or U.S. export laws."

At least 13 pages of the proposal to MCI, which involved expanding its subscriber billing system, were marked "Huawei confidential" and carried the company's logo, according to documents seen by Reuters. In a statement to Reuters, Huawei called it a "bidding document" and said one of its "major local partners," Skycom Tech Co Ltd, had submitted it to MCI.

The statement went on to say, "Huawei's business in Iran is in full compliance with all applicable laws and regulations including those of the U.N., U.S. and E.U. This commitment has been carried out and followed strictly by our company. Further, we also require our partners to follow the same commitment and strictly abide by the relevant laws and regulations."

In October, Reuters reported that another Iranian partner of Huawei last year tried to sell embargoed American antenna equipment to Iran's second largest mobile operator, MTN Irancell, in a deal the buyer ultimately rejected. The U.S. antenna manufacturer, CommScope Inc, has an agreement with Huawei in which the Chinese firm can use its products in Huawei systems, according to a CommScope spokesman. He added that his company strives to comply fully with all U.S. laws and sanctions.

Huawei has a similar partnership with HP. In a statement, the Palo Alto, Calif., company said, "HP has an extensive control system in place to ensure our partners and resellers comply with all legal and regulatory requirements involving system security, global trade and customer privacy and the company's relationship with Huawei is no different."

The statement added, "HP's distribution contract terms prohibit the sale of HP products into Iran and require compliance with U.S. and other applicable export laws."

Washington has banned the export of computer equipment to Iran for years. The sanctions are designed to deter Iran from developing nuclear weapons; Iran says its nuclear program is aimed purely at producing domestic energy.

CLOSE LINKS

Huawei and its Iranian partner, Skycom, appear to have very close ties.

An Iranian job recruitment site called Irantalent.com describes Skycom as "a leading telecom solution provider" and goes on to list details that are identical to the way Huawei describes itself on its U.S. website: employee-owned, selling "solutions" used by "45 of the world's top 50 telecom operators" and serving "one-third of the world's population."

On LinkedIn.com, several telecom workers list having worked at "Huawei-skycom" on their resumes. A former Skycom employee said the two companies shared the same headquarters in China. And an Iranian telecom manager who has visited Skycom's office in Tehran said, "Everybody carries Huawei badges."

A Hong Kong accountant whose firm is listed in Skycom registration records as its corporate secretary said Friday he would check with the company to see if anyone would answer questions. Reuters did not hear back.

The proposal to MCI, dated October 2010, would have doubled the capacity of MCI's billing system for prepaid customers. The proposal noted that MCI was "growing fast" and that its current system, provided by Huawei, had "exceeded the system capacity" to handle 20 million prepaid subscribers.

"In order to keep serving (MCI) with high quality, we provide this expansion proposal to support 40M subscribers," the proposal states on a page marked "HUAWEI Confidential."

The proposal makes clear that HP computer servers were an integral part of the "Hardware Installation Design" of the expansion project. Tables listing equipment for MCI facilities at a new site in Tehran and in the city of Shiraz repeatedly reference HP servers under the heading, "Minicomputer Model."

The documents seen by Reuters also include a portion of an equipment price list that carries Huawei's logo and are stamped "SKYCOM IRAN OFFICE." The pages list prices for HP servers, disk arrays and switches, including those that already are "existing" and others that need to be added. The total proposed project price came to 19.9 million euros, including a "one time special discount."

The proposed new HP equipment, which totaled 1.3 million euros, included one server, 20 disk arrays, 22 switches and software. The existing HP equipment included 22 servers, 8 disk arrays and 13 switches, with accompanying prices.

Asked who had provided the existing HP equipment to MCI, Vic Guyang, a Huawei spokesman, said it wasn't Huawei. "We would like to add that the existing hardware equipment belongs to the customer. Huawei does not have information on, or the authority to check the source of the customer's equipment."

Officials with MCI did not respond to requests for comment.

In a series of stories this year, Reuters has documented how China has become a backdoor for Iran to obtain embargoed U.S. computer equipment. In March and April, Reuters reported that China's ZTE Corp, a Huawei competitor, had sold or agreed to sell millions of dollars worth of U.S. computer gear, including HP equipment, to Telecommunication Co of Iran, the country's largest telecommunications firm, and a unit of the consortium that controls TCI.

The articles sparked investigations by the U.S. Commerce Department, the Justice Department and some of the U.S. tech companies. ZTE says it is cooperating with the federal probes.

TCI is the parent company of MCI.

(Additional reporting by Grace Li and Chyen Yee Lee in Hong Kong and Marcus George in Dubai; Edited by Simon Robinson)

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AP Source: Browns fire coach, GM

BEREA, Ohio (AP) — The Browns are changing again.

A person familiar with the decision says the Cleveland Browns have fired coach Pat Shurmur and general manager Tom Heckert.

Shurmur and Heckert were informed Monday at the team's facility, said the person who spoke on condition of anonymity because the team has not yet announced the moves. The expected dismissals come one day after the Browns lost their finale 24-10 in Pittsburgh, completing a 5-11 season.

Shurmur went 9-23 in his two seasons with the Browns, who will embark on yet another offseason of change — the only constant in more than a decade of futility. Cleveland has lost at least 11 games in each of the past five seasons and made the playoffs just once since returning to the NFL as an expansion team in 1999.

The Browns just can't seem to get it right.

The firings of Shurmur and Heckert signal the start of an expected overhaul by new owner Jimmy Haslam and CEO Joe Banner, who have spent the past two months identifying possible replacements for their top two football positions.

Already, the list of possible coaches to take over for Shurmur includes some of college football's top names. Haslam may want to make a big splash and land either Alabama's Nick Saban or Oregon's Chip Kelly, who both still have bowl games ahead. Penn State's Bill O'Brien is also believed to be on the Browns' short list.

There is also reported interest in several NFL assistants including Indianapolis' Bruce Arians, New England's Josh McDaniels, Denver's Mike McCoy, Washington's Kyle Shanahan and Cincinnati's Jay Gruden.

Among the general manager candidates are: Atlanta player personnel director David Caldwell, San Francisco director of player personnel Tom Gamble, Baltimore assistant GM Eric DeCosta and NFL Network analyst and Mike Lombardi, who worked with Banner in Philadelphia and for the Browns when Bill Belichick was Cleveland's coach.

Banner promised in a recent interview with The Associated Press not to put any limits on his search for a new coach.

"It doesn't have to be a college coach," said Banner, who hired Andy Reid during his 19 seasons with the Eagles. "It doesn't have to be a pro coach. It doesn't have to be an offensive guy. It doesn't have to be a defensive guy. I'm more looking for qualities of a person consistent with the most successful coaches."

Shurmur's replacement will be the Browns' sixth coach since 1999.

The Browns were competitive this season under Shurmur. They just didn't win enough.

Cleveland was still in the playoff mix earlier this month, but a three-game losing streak to close the season — they were blown out by Washington and Denver in consecutive weeks — ended any chance of Shurmur saving his job.

Shurmur was emotional when he addressed the Browns following Sunday's loss.

"He was trying to hold back the tears," said linebacker D'Qwell Jackson. "He put everything into it. He was just emotional about it. He was passionate about it. The players, we appreciate him, we'd run through a brick wall for him."

Shurmur's fate may have been sealed on the first day of training camp in July when Haslam's intent to buy the Browns from Randy Lerner for $1 billion was announced. It may not have mattered how Shurmur did this season because Haslam, a former minority owner with the Pittsburgh Steelers who built his fortune with Flying Pilot J travel centers, was intent on bringing in his own people.

Banner's arrival forced out president Mike Holmgren, who hired both Shurmur and Heckert but left before the end of his third year with Cleveland.

Shumrur, who has two years remaining on his contract, was dealt a difficult hand from the start.

His first season with the Browns was complicated by the labor lockout, depriving him a chance to work with his players in the offseason or installing his offensive and defensive systems. He chose not to hire an offensive coordinator, holding down both positions in his first year, a decision he later said was a mistake.

Shurmur made his share of mistakes. He had some game-management issues and his play calling was often questioned. However, the 47-year-old seemed to be getting better in his second season, and he deserves credit for developing one of the league's youngest teams. The Browns had 17 rookies and 26 players with two years or less of experience on their roster.

Heckert, who came to Cleveland from Philadelphia, succeeded in upgrading the Browns' talent. He overhauled an aging team, infusing the Browns with solid young players through the draft. In April, he selected running back Trent Richardson, quarterback Brandon Weeden and offensive tackle Mitchell Schwartz, all of whom had solid first pro seasons.

Heckert also gambled and nabbed wide receiver Josh Gordon in the supplemental draft, a choice that seemed risky but paid off as the 21-year-old blossomed.

But it may have been a move Heckert couldn't pull off that doomed him.

The Browns were beaten out by Washington in the sweepstakes to get prized rookie quarterback Robert Griffin III. Cleveland tried to package picks to swap with the Rams, who eventually made a blockbuster deal with the Redskins who then drafted RGIII with the second overall choice.

Heckert, who was Holmgren's first hire with Cleveland, thought he would have five years to build the Browns but wound up getting just three. It's expected Heckert will quickly be scooped up as more than one dozen teams are expected to have front-office openings.

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Online: http://pro32.ap.org/poll and http://twitter.com/AP_NFL

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Kanye West, Kim Kardashian expecting baby: reports

(Reuters) – Rapper Kanye West and reality TV star Kim Kardashian are expecting their first child, celebrity media outlets reported on Monday.

Fans and family took to Twitter to congratulate the celebrity power couple.

“Been wanting to shout from the rooftops with joy and now I can!” wrote Kardashian’s sister Kourtney. “Another angel to welcome to our family. Overwhelmed with excitement!”

According to E! News, West, 35, announced the news from the stage at a concert in Atlantic City on Sunday.

Kardashian, 32, who rose to fame five years ago for her appearances in reality TV show “Keeping Up with the Kardashians”, was the most-searched person on the Yahoo! website in 2012.

She married basketball player Kris Humphries in August, 2011, in a lavish, made-for-TV wedding, but the couple divorced just 72 days later.

(Editing by Paul Casciato)

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Kenya hospital imprisons new mothers with no money

NAIROBI, Kenya (AP) — The director of the Pumwani Maternity Hospital, located in a hardscrabble neighborhood of downtown Nairobi, freely acknowledges what he's accused of: detaining mothers who can't pay their bills. Lazarus Omondi says it's the only way he can keep his medical center running.

Two mothers who live in a mud-wall and tin-roof slum a short walk from the maternity hospital, which is affiliated with the Nairobi City Council, told The Associated Press that Pumwani wouldn't let them leave after delivering their babies. The bills the mothers couldn't afford were $60 and $160. Guards would beat mothers with sticks who tried to leave without paying, one of the women said.

Now, a New York-based group has filed a lawsuit on the women's behalf in hopes of forcing Pumwani to stop the practice, a practice Omondi is candid about.

"We hold you and squeeze you until we get what we can get. We must be self-sufficient," Omondi said in an interview in his hospital office. "The hospital must get money to pay electricity, to pay water. We must pay our doctors and our workers."

"They stay there until they pay. They must pay," he said of the 350 mothers who give birth each week on average. "If you don't pay the hospital will collapse."

The Center for Reproductive Rights, which filed the suit this month in the High Court of Kenya, says detaining women for not paying is illegal. Pumwani is associated with the Nairobi City Council, one reason it might be able to get away with such practices, and the patients are among Nairobi's poorest with hardly anyone to stand up for them.

Maimouna Awuor was an impoverished mother of four when she was to give birth to her fifth in October 2010. Like many who live in Nairobi's slums, Awuor performs odd jobs in the hopes of earning enough money to feed her kids that day. Awuor, who is named in the lawsuit, says she had saved $12 and hoped to go to a lower-cost clinic but was turned away and sent to Pumwani. After giving birth, she couldn't pay the $60 bill, and was held with what she believes was about 60 other women and their infants.

"We were sleeping three to a bed, sometimes four," she said. "They abuse you, they call you names," she said of the hospital staff.

She said saw some women tried to flee but they were beaten by the guards and turned back. While her husband worked at a faraway refugee camp, Awuor's 9-year-old daughter took care of her siblings. A friend helped feed them, she said, while the children stayed in the family's 50-square-foot shack, where rent is $18 a month. She says she was released after 20 days after Nairobi's mayor paid her bill. Politicians in Kenya in general are expected to give out money and get a budget to do so.

A second mother named in the lawsuit, Margaret Anyoso, says she was locked up in Pumwani for six days in 2010 because she could not pay her $160 bill. Her pregnancy was complicated by a punctured bladder and heavy bleeding.

"I did not see my child until the sixth day after the surgery. The hospital staff were keeping her away from me and it was only when I caused a scene that they brought her to me," said Anyoso, a vegetable seller and a single mother with five children who makes $5 on a good day.

Anyoso said she didn't have clothes for her child so she wrapped her in a blood-stained blouse. She was released after relatives paid the bill.

One woman says she was detained for nine months and was released only after going on a hunger strike. The Center for Reproductive Rights says other hospitals also detain non-paying patients.

Judy Okal, the acting Africa director for the Center for Reproductive Rights, said her group filed the lawsuit so all Kenyan women, regardless of socio-economic status, are able to receive health care without fear of imprisonment. The hospital, the attorney general, the City Council of Nairobi and two government ministries are named in the suit.

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Associated Press reporter Tom Odula contributed to this report.

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Kanye West, Kim Kardashian expecting 1st child

ATLANTIC CITY, N.J. (AP) — A kid for Kimye: Kanye West and Kim Kardashian are expecting their first child.

The rapper announced at a concert Sunday night that his girlfriend is pregnant. Kardashian was in the crowd at Revel Resort's Ovation Hall with her mother, Kris Jenner, and West's mentor and best friend, Jay-Z. West told the crowd of more than 5,000 in song form: "Now you having my baby."

The crowd roared. And so did people on the Internet.

The news instantly went viral on Twitter and Facebook, with thousands posting and commenting on the expecting couple.

Most of the Kardashian clan also tweeted about the news, including Kim's sisters. Kourtney Kardashian wrote: "Another angel to welcome to our family. Overwhelmed with excitement!"

West, 35, also told concertgoers to congratulate his "baby mom" and that this was the "most amazing thing."

Representatives for West and Kardashian, 32, didn't immediately respond to emails about the pregnancy.

The rapper and reality TV star went public in March.

Kardashian married NBA player Kris Humphries in August 2011 and their divorce is not finalized.

West's Sunday-night show was his third consecutive performance at Revel. He took the stage for nearly two hours, performing hits like "Good Life," ''Jesus Walks" and "Clique" in an all-white ensemble with two bandmates.

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AP Writer Bianca Roach contributed to this report.

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Follow Mesfin Fekadu on Twitter at http://twitter.com/MusicMesfin . Follow Bianca Roach at http://twitter.com/B__Roach

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Tribune Co. emerges from bankruptcy

The last day of 2012 is the first of a new era for Tribune Co.

After spending more than four years embroiled in a contentious Chapter 11 bankruptcy case, the reorganized Chicago-based media company emerged Monday under new owners and a newly appointed board, freed from its massive debt and facing an uncertain future.

Senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase & Co. are set to take control of Tribune Co.’s storied portfolio of publishing and broadcasting assets, including the Chicago Tribune, officials said.

It was an almost anticlimactic end to a long and painful chapter in Tribune Co.'s 165-year history. Late Sunday, the new Tribune Co. named its board of directors, filed notification with the Delaware bankruptcy court where the bulk of legal wrangling took place and declared its existence.

"It took a long time to get here," said Ken Liang, a managing director at Oaktree and a new member of the board. "It was a tough restructuring. We're pretty excited about the exit."

The new board also will include Tribune Co. CEO Eddy Hartenstein; Ross Levinsohn, who recently left as interim chief executive of Yahoo Inc.; Craig Jacobson, a well-known entertainment lawyer; Peter Murphy, a former strategy executive at Walt Disney Co. and Ceasars Entertainment; Bruce Karsh, Oaktree president; and Peter Liguori, a former top television executive at Fox and Discovery.

Liguori is expected to be named chief executive of Tribune Co. going forward.

Hartenstein, who is publisher of the Los Angeles Times, has been CEO of Tribune Co. since May 2011. He will remain in the role until the board convenes its first meeting in the next several weeks, where it will name the company’s executive officers, according to a company statement.

“Tribune will emerge from the bankruptcy process as a multi-media company with a great mix of profitable assets, strong brands in major markets and a much-improved capital structure,” Hartenstein said in the statement.

Tribune Co. owns 23 television stations, including WGN-Ch. 9, WGN America, eight daily newspapers and other media assets, all of which the reorganization plan valued at $4.5 billion after cash distributions and new financing. Eventually, all the assets are expected to be sold, according to the new owners.

They take the reins of a company that saw its worth essentially cut in half since 2007, when Chicago billionaire Sam Zell took it private in an $8.2 billion leveraged buyout. The rapid decline was mostly due to falling newspaper valuations in the face of digital competition. The anticipated hiring of Liguori suggests that broadcasting will be the operational focus going forward, according to several media analysts.

Los Angeles-based Oaktree, the largest shareholder, with about 23 percent of the equity, appointed two of seven board members. Both Angelo Gordon and JPMorgan have roughly a 9 percent stake and appointed one seat each. The three jointly appointed two more board members, with the final seat occupied by the chief executive.

Among the outgoing board members is Zell, whose deal was seen at the time as an alternative to the squabbles within Tribune Co. that threatened to break apart the then-publicly traded company. But the Great Recession and plummeting advertising revenues across all media, especially the struggling newspaper industry, made the company’s resulting $13 billion debt load untenable.

Tribune Co. filed for Chapter 11 bankruptcy protection in December 2008. Zell blamed a “perfect storm” of industry and economic forces. But the bankruptcy case turned on charges leveled by junior creditors that saddling the company with such a debt burden left it insolvent from the outset.

Led by an aggressive distressed debt fund called Aurelius Capital Management, the junior creditors pressed litigation that stretched out the case for three and a half years in a Delaware court before U.S. Bankruptcy Judge Kevin Carey confirmed the reorganization plan in July. An emergency appeal to stay that decision was dismissed by the 3rd U.S. Circuit Court of Appeals in September. In November, the Federal Communications Commission signed off on waivers needed to transfer Tribune Co.’s broadcast properties to the new ownership, clearing the last hurdle to its emergence from Chapter 11.

“Usually, bankruptcy cases like this take much less time and cost less money,” said Douglas Baird, a bankruptcy expert and law professor at the University of Chicago.

Baird said legal fees for most large corporate bankruptcies run 3 to 4 percent of the company’s total worth. The Tribune Co. case, which will likely cost the company more than $500 million in legal and other professional fees, was more than twice that percentage, due to both the extended litigation and the company’s declining valuation.

Before cash distributions and new financing, a 2012 analysis by financial adviser Lazard valued the broadcasting assets, including the TV stations, WGN-AM 720, CLTV and national cable channel WGN America, at $2.85 billion. Other strategic assets, such as online job site CareerBuilder and cable channel Food Network, are worth $2.26 billion.

Tribune Co.’s newspaper holdings, including the Tribune, Los Angeles Times and six other daily publications, have withered to $623 million in total value, according to Lazard. In 2006, entertainment mogul David Geffen made a $2 billion cash offer for the Los Angeles Times.

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If fiscal cliff deal comes, it could be modest and short-lived

Whether negotiated in a rush before the new year or left for early January, the fiscal deal President Barack Obama and Congress cobble together will be far smaller than what they initially envisioned as an alternative to purposefully distasteful tax increases and spending cuts.

Instead, their deal, if a deal they indeed cut, will put off some big decisions about tax and entitlement changes and leave other deadlines in place that will likely lead to similar moments of brinkmanship, some in just a matter of weeks.

Republican and Democratic negotiators in the Senate were hoping for a deal as early as Sunday on what threshold to set for increased tax rates, whether to keep current inheritance tax rates and exemptions and how to pay for jobless benefits and avoid cuts in Medicare payments to doctors.

An agreement would halt automatic across-the-board tax increases for virtually every American and perhaps temporarily put off some steep spending cuts in defense and domestic programs.

Gone, however, is the talk of a grand deal that would tackle broad spending and revenue demands and set the nation on a course to lower deficits. Obama and Republican House Speaker John Boehner were once a couple hundred billion dollars apart of a deal that would have reduced the deficit by more than $2 trillion over ten years.

Republicans have complained that Obama has demanded too much in tax revenue and hasn't proposed sufficient cuts or savings in the nation's massive health care programs.

In an interview on NBC's "Meet the Press" that aired Sunday, Obama upped the pressure on Republicans to negotiate a fiscal deal, arguing that GOP leaders have rejected his past attempts to strike a bigger and more comprehensive bargain.

"The offers that I've made to them have been so fair that a lot of Democrats get mad at me," Obama said.

The interview was taped Saturday while aides to the Senate Republican leader, Mitch McConnell of Kentucky, and to Senate Majority Leader Harry Reid, D-Nev., were engaged in negotiations in the Capitol in hopes of having something to present senators as early as Sunday.

"I was modestly optimistic yesterday, but we don't yet see an agreement," Obama said, referring to his mood Friday. "And now the pressure's on Congress to produce."

The trimmed ambitions of today are a far cry from the upbeat bipartisan rhetoric of just six weeks ago, when the leadership of Congress went to the White House to set the stage for negotiations to come.

"I outlined a framework that deals with reforming our tax code and reforming our spending," Boehner said as the leaders gathered on the White House driveway on Nov. 16.

"We understand that it has to be about cuts, it has to be about revenue, it has to be about growth, it has to be about the future," House Democratic leader Nancy Pelosi said at the time. "I feel confident that a solution may be in sight."

And Senate Majority Leader Harry Reid, D-Nev., offered a bold prediction: "There is no more let's do it some other time. We are going to do it now."

That big talk is over for now.

Senate negotiators were haggling over what threshold of income to set as the demarcation between current tax rates and higher tax rates. They were negotiating over estate limits and tax levels, how to extend unemployment benefits, how to prevent cuts in Medicare payments to doctors and how to keep a minimum income tax payment designed for the rich from hitting about 28 million middle class taxpayers.

But the deal was not meant to settle other outstanding issues, including more than $1 trillion in cuts over 10 years, divided equally between the Pentagon and other government spending. The deal also would not address an extension of the nation's borrowing limit, which the government is on track to reach any day but which the Treasury can put off through accounting measures for about two months.

That means Obama and the Congress are already on a new collision path. Republicans say they intend to use the debt ceiling as leverage to extract more spending cuts from the president. Obama has been adamant that unlike 2011, when the country came close to defaulting on its debts, he will not yield to those Republican demands.

As the day ended Saturday, there were few signs of success on a scaled-back deal. But no one was declaring a stalemate either.

Lawmakers have until the new Congress convenes to pass any compromise, and even the calendar mattered. Democrats said they had been told House Republicans might reject a deal until after Jan. 1, to avoid a vote to raise taxes before they had technically gone up, and then vote to cut taxes after they had risen.

Republicans said they were willing to bow to Obama's call for higher taxes on the wealthy as part of a deal to prevent them from rising on those less well-off.

Democrats said Obama was sticking to his campaign call for tax increases above $250,000 in annual income, even though he said in recent negotiations he said he could accept $400,000. There was no evidence of agreement even at the higher level.

Obama, who once proposed nearly $1.6 trillion in tax revenue over 10 years, would get about half of that if he succeeded in getting a $250,000 threshold over 10 years. At a $400,000 level, the revenue figure drops to about $600 billion over a decade.

Republicans want to leave the estate tax at 35 percent after exempting the first $5 million in estate value. Officials said the White House wants a 45 percent tax after a $3.5 million exemption. Without any action by Congress, it would climb to a 55 percent tax after a $1 million exemption on Jan. 1. Obama's proposal would generate more than $100 billion in additional revenue over 10 years.

Democrats stressed their unwillingness to make concessions on both income taxes and the estate tax, and hoped Republicans would choose which mattered more to them.

Associated Press writer David Espo contributed to this article

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Apple loses another copyright lawsuit in China: Xinhua

SHANGHAI (Reuters) - A Chinese court has fined Apple Inc 1 million yuan ($160,400) for hosting third-party applications on its App Store that were selling pirated electronic books, the official Xinhua news agency reported on Friday.

Apple is to pay compensation to eight Chinese writers and two companies for violating their copyrights, the Beijing No.2 Intermediate People's Court ruled on Thursday, Xinhua said.

Earlier in the year, a group of Chinese authors filed the suit against Apple, saying an unidentified number of apps on its App Store sold unlicensed copies of their books. The group of eight authors was seeking 10 million yuan in damages.

"We are disappointed at the judgment. Some of our best-selling authors only got 7,000 yuan. The judgment is a signal of encouraging piracy," Bei Zhicheng, a spokesman for the group, told Reuters.

Apple said in a statement that it takes copyright infringement complaints "very seriously".

"We're always updating our service to better assist content owners in protecting their rights," Apple spokeswoman Carolyn Wu said.

China has the world's largest Internet and mobile market by number of users, but piracy costs software companies billions of dollars each year.

Apple, whose products enjoy great popularity in China, has faced a string of legal headaches this year. In July, Apple paid 60 million yuan to a Chinese firm, Proview Technology, to settle a long-running lawsuit over the iPad trademark in China.

($1 = 6.2360 Chinese yuan)

(Reporting by Shanghai Newsroom and Melanie Lee; Editing by Kazunori Takada and Matt Driskill)

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