Tribune Ends Employee Stock Plan
November 4, 2009: Tribune Co.'s employee stock ownership plan is "toast," the Tribune-owned Los Angeles Times reports.
Employees were told in a memo that the ESOP will likely end when the company emerges from bankruptcy protection.
Tribune filed for Chapter 11 in 2008, after a highly leveraged buyout led by Chicago-based billionaire Sam Zell. The Times says it became clear months ago that the banks and investors that financed the deal "probably would take over ownership from Tribune's employees when the reorganization plan was filed."
The employee memo said Tribune employees will be offered a new 401(k) in place of the ESOP.
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