Judge authorizes paying $13M in bonuses for nearly 700 Tribune employees

Judge authorizes $13M in Tribune employee bonuses

WILMINGTON, Del. — A bankruptcy court judge has authorized Tribune Co. to pay more than $13 million in bonuses to almost 700 employees.

Tuesday’s ruling came after the Tribune’s chief financial officer testified that the bonuses are needed to motivate key managers in a challenging economic climate.

The judge was also to hear arguments on Tribune’s request to make $2.6 million in severance payments to 68 employees, all but two let go before Tribune filed for bankruptcy protection.

Tribune, which owns the Los Angeles Times, Chicago Tribune, The Baltimore Sun, The Hartford Courant and other dailies, as well as 23 TV stations, sought bankruptcy protection in December because of dwindling advertising revenues and a $13 billion debt.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

WILMINGTON, Del. (AP) — A Delaware bankruptcy judge is set to hear arguments on a request by the Tribune Co. for approval to pay $13 million in bonuses to almost 700 employees for their work last year.

The judge presiding over Tuesday’s hearing also will consider the company’s request to make $2.6 million in severance payments to 68 employees, all but two of whom were terminated before Tribune filed for bankruptcy protection.

The U.S. trustee has in the case has objected to the proposed payments.

Tribune, which owns the Los Angeles Times, Chicago Tribune, The Sun of Baltimore, The Hartford Courant and other dailies, as well as 23 TV stations, had sought bankruptcy protection in December because of dwindling advertising revenues and a $13 billion debt.