Gimme Cash

Tribune is hoarding cash in the event credit markets tighten further, the Chicago Tribune reported this week. The company drew down an additional $250 million of revolving credit. The just-in-case-we-need-it money represents about half of Tribune's revolving credit line.


Revolving lines of credit are often used for things such as payroll, etc. Even well capitalized companies are reporting problems accessing cash. I read the other day that hotel chain Marriott was having issues, although it's financially sound.

With its finances on shaky footing and a credit market that has dried up, I guess Tribune is not taking any chances. Their motto seems to be let's hold onto cash. It doesn't seem like an unreasonable thing to do right now, but it also makes you wonder how much Tribune's financial situation has worsened.