Study Suggests Lower Death Risk for the Overweight





A century ago, Elsie Scheel was the perfect woman. So said a 1912 article in The New York Times about how Miss Scheel, 24, was chosen by the “medical examiner of the 400 'co-eds'” at Cornell University as a woman “whose very presence bespeaks perfect health.”




Miss Scheel, however, was hardly model-thin. At 5-foot-7 and 171 pounds, she would, by today's medical standards, be clearly overweight. (Her body mass index was 27; 25 to 29.9 is overweight.)


But a new report suggests that Miss Scheel may have been onto something. The report on nearly three million people found that those whose B.M.I. ranked them as overweight had less risk of dying than people of normal weight. And while obese people had a greater mortality risk over all, those at the lowest obesity level (B.M.I. of 30 to 34.9) were not more likely to die than normal-weight people.


The report, although not the first to suggest this relationship between B.M.I. and mortality, is by far the largest and most carefully done, analyzing nearly 100 studies, experts said.


But don’t scrap those New Year’s weight-loss resolutions and start gorging on fried Belgian waffles or triple cheeseburgers.


Experts not involved in the research said it suggested that overweight people need not panic unless they have other indicators of poor health and that depending on where fat is in the body, it might be protective or even nutritional for older or sicker people. But over all, piling on pounds and becoming more than slightly obese remains dangerous.


“We wouldn’t want people to think, ‘Well, I can take a pass and gain more weight,'” said Dr. George Blackburn, associate director of Harvard Medical School’s nutrition division.


Rather, he and others said, the report, in The Journal of the American Medical Association, suggests that B.M.I., a ratio of height to weight, should not be the only indicator of healthy weight.


“Body mass index is an imperfect measure of the risk of mortality,” and factors like blood pressure, cholesterol and blood sugar must be considered, said Dr. Samuel Klein, director of the Center for Human Nutrition at Washington University School of Medicine in St. Louis.


Dr. Steven Heymsfield, executive director of the Pennington Biomedical Research Center in Louisiana, who wrote an editorial accompanying the study, said that for overweight people, if indicators like cholesterol “are in the abnormal range, then that weight is affecting you,” but that if indicators are normal, there’s no reason to “go on a crash diet.”


Experts also said the data suggested that the definition of "normal" B.M.I., 18.5 to 24.9, should be revised, excluding its lowest weights, which might be too thin.


The study did show that the two highest obesity categories (B.M.I. of 35 and up) are at high risk. “Once you have higher obesity, the fat’s in the fire,” Dr. Blackburn said.


But experts also suggested that concepts of fat be refined.


"Fat per se is not as bad as we thought," said Dr. Kamyar Kalantar-Zadeh, professor of Medicine and Public Health at the University of California, Irvine. "What is bad is a type of fat that is inside your belly. Non-belly fat, underneath your skin in your thigh and your butt area — these are not necessarily bad." He added that, to a point, extra fat is accompanied by extra muscle, which can be healthy.


Still, it is possible that overweight or somewhat obese people are less likely to die because they, or their doctors, have identified other conditions associated with weight gain, like high cholesterol or diabetes.


“You’re more likely to be in your doctor’s office and more likely to be treated,” said Dr. Robert Eckel, a past president of the American Heart Association and a professor at University of Colorado.


Some experts said fat could be protective in some cases, although that is unproven and debated. The study did find that people 65 and over had no greater mortality risk even at high obesity.


“There’s something about extra body fat when you’re older that is providing some reserve,” Dr. Eckel said.


And studies on specific illnesses, like heart and kidney disease, have found an “obesity paradox,” that heavier patients are less likely to die.


Still, death is not everything. Even if "being overweight doesn't increase your risk of dying," Dr. Klein said, it "does increase your risk of having diabetes" or other conditions.


Ultimately, said the study’s lead author, Katherine Flegal, a senior scientist at the Centers for Disease Control and Prevention, “the best weight might depend on the situation you’re in.”


Take the perfect woman, Elsie Scheel, in whose "physical makeup there is not a single defect," the Times article said. This woman who "has never been ill and doesn't know what fear is" loved sports and didn't consume candy, coffee or tea. But she also ate only three meals every two days, and loved beefsteak.


Maybe such seeming contradictions made sense against the societal inconsistencies of that time. After all, her post-college plans involved tilling her father’s farm, but “if she were a man, she would study mechanical engineering.”


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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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Chicago, Cook and State fees to rise in 2013









As the uncertain income-tax implications of the so-called federal fiscal cliff spread angst across the country, Illinois residents know for sure how much financial pain they will absorb from local tax, fee, fine and fare increases in the new year.

In Chicago, water bills will rise significantly, property taxes will go up, parking meter rates will jump yet again and speed cameras will start fining led-footed drivers near schools and parks. Across Cook County, smokers, gun buyers and some businesses face tax increases as well as some new charges.

Throughout the state, car owners and strip club patrons will pay higher fees. And many Chicago-area commuters will be hit with increased fares and tolls.

But it’s not all bad news: the Cook County sales tax will drop by a quarter percentage point, and residential and small-business electric bills will drop.

Chicago

The biggest, broadest hit in Chicago and many suburbs will result from higher water and sewer rates that go into effect Jan. 1. Mayor Rahm Emanuel’s administration expects to collect $109.5 million more from water and sewer fees, with the money earmarked to upgrade the entire system.

It’s a 15 percent rate increase in water rates for city property owners and suburbs that buy city water. Sewer charges, added to the bimonthly bill paid by city property owners, will be 92 percent of the water tab, an increase of 3 percentage points.

And smaller nonprofit groups will be required to pay 60 percent of the going rate for water. That’s up from 40 percent this year, and it’s been a sticking point between the mayor and some religious leaders.

City homeowners also will see an increase in property taxes — on average $28 — because of a boost in the Chicago Public Schools levy to raise an extra $41 million for the cash-strapped district.

In addition, the city is phasing out the rebate for condominium owners who don't get city garbage pickup. The check will be cut in half to $25.

Parking meter rates will rise in January for the fifth year in a row as a result of a much-maligned 75-year lease launched by former Mayor Richard M. Daley. The hourly rate downtown will be $6.50, a 75-cent increase. In business areas near the Loop, it will be $4 or 50 cents more. In neighborhoods, the rate will be $2, a quarter-per-hour hike.

Speeders in Chicago might want to set aside some money to pay tickets. Two companies are now staging trials of speed cameras near parks and schools under a program Emanuel touted as a safety initiative. Once the cameras are up and running and fines are being doled out, the city expects to raise between $20 million and $30 million in 2013.

After a trial period, the owners of vehicles photographed going 6 to 10 mph above the limit will be fined $35. Those caught topping the speed limit by more than 10 mph will get hit with $100 fines.

Meanwhile, a new city electricity bulk-purchasing plan is expected to reduce rates by about $20 a month for the average household from February through May. Starting June 1, when ComEd’s power rates are expected to drop, the savings will narrow.

Cook County

Taxpayers will get a couple months before county tax and fee hikes take effect. The county tax on a pack of cigarettes will double to $2 on March 1, raising the overall per-pack tax to $6.67. That’s just 19 cents shy of New York City’s nation-leading tobacco tax.

A month later, the county will start charging a so-called use tax of 1.25 percent on out-of-county purchases. The levy applies after the first $3,500 in spending, and is much more likely to affect businesses than individuals.

Also on April 1, the county will start charging a $25 tax on each gun purchase. On June 1, a $1,000-a-year tax on slot machines and $200-a-year tax on video gambling terminals will kick in.

All told, the county expects to raise $41.7 million from new taxes. But the county also stands to lose $86 million by lowering its share of the sales tax from 1 percent to .75 percent with the new year. That will leave the total sales tax tab in downtown Chicago at 9.25 percent.

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Sony No Longer Shipping PlayStation 2 in Japan






You may have grown up with it. Your children may have, too.


Sony‘s PlayStation 2 home game console, released in 2000, was one of the most popular game consoles of all time, rivaled in sales only by the different kinds of Nintendo DS handheld console. It continued to be sold new on store shelves until just recently, even years after Sony launched its PlayStation 3 successor.






Now, however, Sony’s sent out its last shipment of new “PS2″ consoles for the Japanese market, according to Japanese gaming news site Famitsu (as reported by Polygon’s Emily Gera). Some other regions are continuing to receive shipments for now, but the heart of the PlayStation 2 phenomenon has finally stopped beating.


A gaming legend


Japanese PlayStation fans saw thousands more titles released in their language than English-speaking players. The PlayStation 2 was especially well-known for its role-playing games, such as the MMORPG Final Fantasy XI, which was designed so closely around the PS2′s capabilities that its Windows PC version uses almost entirely the same graphics and controller-based interface.


New PS2 games continue to ship; Final Fantasy XI is even getting a full-fledged, retail-boxed expansion pack this March. It’ll only support the PS2 in Japan, however, where dedicated players continue to use the original “fat” PS2 consoles with the hard drive expansion slot. Internationally, it will only support the PC and Xbox 360.


PS2 games in a post-PS2 world


The first PlayStation 3 consoles — infamous for the silence which ensued at the Sony event where their price at launch was announced to be “599 U.S. dollars” — were backwards-compatible with the vast majority of PlayStation 2 and original PSOne games. Sony achieved PS2 backwards compatibility, however, by including the PS2′s actual “Emotion Engine” and “Graphics Synthesizer” chips inside each PS3, essentially making it two game consoles in one (and helping to drive up that launch price).


A redesign bumped down the price some, but at the cost of removing the Emotion Engine chip, which caused the redesigned PS3 consoles to sometimes have bugs or fail to play certain games. Today’s PS3 consoles lack both chips, which means that while they play PSOne games just fine, they don’t support PS2 game discs at all and can’t be upgraded to do so.


The legend lives on?


Sony has made HD remakes of certain PS2 titles, and republished others for the PS3 under the “PlayStation 2 Classics” brand. Dozens of such titles have been re-released as digital downloads in the PlayStation Network store.


This method of playing a PS2 game on the PS3, however, involves essentially buying the game again (assuming that it’s even in the store), sort of like Sony’s method of playing PlayStation Portable games on the Vita. Even rebuying the games for the PS3 doesn’t ensure continued playability on modern Sony consoles; the upcoming “PlayStation 4″ (not its actual name) reportedly won’t be able to play games made for the PS3.


Jared Spurbeck is an open-source software enthusiast, who uses an Android phone and an Ubuntu laptop PC. He has been writing about technology and electronics since 2008.
Linux/Open Source News Headlines – Yahoo! News





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Green Day to get back on road in March






NEW YORK (Reuters) – The members of Green Day said on Monday they will return to the road in March after the punk rock band canceled its fall club tour and postponed later dates as frontman Billie Joe Armstrong underwent treatment for substance abuse.


“We want to thank everyone for hanging in with us for the last few months,” the band members said in a statement on their website. “We are very excited to hit the road and see all of you again, though we regret having to cancel more shows.”






Armstrong, lead singer and guitarist for the Grammy-winning rock band, sought substance abuse treatment in September following an angry, guitar-smashing on-stage outburst in Las Vegas. The details of his addiction were never specified.


Armstrong, 40, added to the website posting with a note on Instagram, saying:


“Dear friends … I just want to thank you all for the love and support you’ve shown for the past few months. Believe me, it hasn’t gone unnoticed and I’m eternally grateful to have such an amazing set of friends and family.


“I’m getting better every day,” he said. “So now, without further ado, the show must go on. We can’t wait to get on the road and live out loud! Our passion has only grown stronger.”


The tour will begin in Chicago on March 28, with dates in Pittsburgh, New York, Toronto and other cities up through April 12 in Quebec City.


The band said it would announce additional West Coast dates in early 2013.


Tickets for the postponed shows will be honored at the new dates, Green Day said. Tickets for canceled shows will be refunded at the point of purchase.


In November the band moved up the release date of “iTrĂ©!,” part of an ambitious trilogy of albums that marks their first collection of new music since 2009, to December 11 from its original date of January 15, in part to make up for the canceled and postponed dates.


The California-based punk rock band, formed in the late 1980s, has sold more than 65 million records worldwide and won five Grammys, including best alternative album for its 1994 major-label debut, “Dookie,” and best rock album for “American Idiot” and “21st Century Breakdown.”


(Reporting by Chris Michaud; Editing by Jill Serjeant and Bill Trott)


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Well: Managing Diabetes, Then Told of Cancer

Nine years ago, Brenda Gray, a former schoolteacher in North Carolina, discovered she had Type 2 diabetes.

Since then, she has learned to manage the disease, diligently taking her medicine and keeping tabs on her blood sugar. But in September, she was told she had skin cancer, and her diabetes spun out of control.

Ms. Gray started an aggressive course of treatment that included radiation therapy. But the treatments weakened her and destroyed her appetite. Unable to eat, she developed dangerously low blood-sugar levels, and about two months ago, Ms. Gray’s daughter had to rush her to a hospital.

“She found me in bed shaking and sweating,” said Ms. Gray, who is 62 and lives in Durham. “When I got to the hospital, they couldn’t understand how I was still standing.”

Cancer and diabetes are two of the leading killers in America. Each can be a devastating diagnosis in its own right, but researchers are finding that the two often occur together. By some estimates, as many as one in five cancer patients also has diabetes.

In a recent joint report, the American Cancer Society and the American Diabetes Association noted that people with Type 2 diabetes have an increased risk of developing cancers of the liver, pancreas, colon and bladder. Researchers with the National Cancer Institute released a similar report last year, which found greater rates of cancer among diabetics, as well as an elevated risk of dying from cancer.

Experts say it is clear from accumulating clinical data that the two share some biological links. The problem results from simple demographics as well: with the rapid rise in Type 2 diabetes and a growing population of cancer survivors, the two diseases are coinciding more frequently in older patients.

“We are going to see a lot greater numbers of people with both diseases,” said Edward Giovannucci, a professor of nutrition and epidemiology at the Harvard School of Public Health and an author of the joint report. “By some estimates, the link between diabetes and cancer may quantitatively become even more important than the link between smoking and cancer.”

Already, oncologists say, it is not uncommon to encounter patients struggling to balance cancer treatments with insulin shots and diabetes drugs. Because cancer is generally seen as the more lethal of the two diseases, patients often make it the priority.

“Although cancer is no longer generally a death sentence, for many patients, they see it as that no matter what you say,” said Dr. June McKoy, a geriatric oncologist at the Northwestern University Feinberg School of Medicine. “Suddenly, they put their diabetes on the back burner, and they focus on the cancer.” But high blood sugar can damage kidneys and blood vessels, strain the immune system and worsen cancer prognosis.

Researchers say that the link between the two diseases is complex and driven by many factors. Typically, though, it is diabetes that sets the stage for cancer. “Most cancers don’t cause diabetes,” said Dr. Pankaj Shah, an endocrinologist at the Mayo Clinic in Rochester, Minn. “Mostly diabetes increases the risk of cancer.”

Type 2 diabetes is often preceded by chronically high insulin levels and high blood sugar, fertile conditions for cancer. Insulin is known to fuel cell growth, and cancer cells consume glucose out of proportion to other nutrients. The two diseases share many risk factors as well, including obesity, poor diet, physical inactivity, smoking and advanced age.

Another factor that complicates the relationship is the treatments given to patients. Diabetes drugs can have an impact on cancer prognosis and vice versa. Type 2 diabetics treated with the drug metformin, for example, develop cancer less frequently than diabetics given other medications. A number of clinical trials are now under way to see how well the drug performs as a cancer treatment.

Drugs used against cancer, on the other hand, tend to worsen diabetes. Chemotherapy can wreak havoc on blood sugar levels, and glucocorticoids, which are widely prescribed to alleviate nausea in cancer patients, promote insulin resistance, said Dr. Lorraine L. Lipscombe of Women’s College Hospital in Toronto.

Dr. Lipscombe was the lead author of a large study last month that found that breast cancer survivors were 20 percent more likely to receive a diabetes diagnosis than other women. The study found evidence that glucocorticoids and chemotherapy may hasten the onset of diabetes.

“They don’t cause diabetes in everyone, but they can bring out or unmask it in people who might already be vulnerable,” she said.

For diabetics who are used to tightly monitoring their blood sugar levels, the impact of cancer drugs can be alarming. Rigoberto Cortes, 71, a former metal worker in Chicago, has had Type 2 diabetes for over two decades. A year ago, he was told he had Stage 3 colon cancer.

“When I started chemotherapy, my sugar level was going way up and way down like never before,” he said. “I kept asking my oncologist what I should do.”

Mr. Cortes said his oncologist was not very concerned by the blood sugar swings. He eventually got a second opinion and switched doctors. He also lost weight and changed his eating habits, which helped minimize his blood sugar swings.

Although every case is different, the general strategy in treating such patients should be to get the cancer under control first, said Dr. Shah at the Mayo Clinic.

“Diabetes treatment essentially is given to prevent long-term complications,” he added.

At some hospitals, oncologists may take responsibility for managing blood sugar and other diabetes concerns in their cancer patients. But ideally, treatments should be coordinated by a team that includes a certified diabetes educator.

“They go over diet with the patient, review their medication, review their insulin,” said Dr. McKoy of Northwestern. “They can play a big role.”

For a diabetic trying to navigate the world of cancer, or a cancer patient navigating the world of diabetes, such interventions can be crucial. In a study published in October, Dr. McKoy and her colleagues looked at several years of health records for over 200,000 people with Type II diabetes who developed cancer.

Those who underwent a diabetes counseling session after their cancer diagnosis — consisting of two sessions a week for four to six weeks — were more likely to receives tests of hemoglobin A1c levels, a barometer of how well blood sugar has been controlled over time, and to take care of their blood sugar levels. As a result, they had fewer emergency room visits, fewer hospital admissions and lower health care costs.

Ms. Gray, the former schoolteacher in Durham, learned this firsthand. After her recent emergency, she worked with a diabetes educator at Duke University Hospital. Ms. Gray learned tips and strategies to balance the two diseases, including ways to keep her blood sugar normal when cancer treatments ruin her appetite.

“I came into the hospital and they got me back on track,” she said. “I was just so focused on the cancer. It changed everything. But I’ve learned how to face this.”

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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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Fiscal deal stalls as clock ticks to deadline

Senate negotiators remain short of an agreement as a year-end deadline looms to prevent tax increases for nearly all Americans. (Dec. 30)










WASHINGTON (Reuters) - Efforts to prevent the economy from tumbling over a "fiscal cliff" stalled on Sunday as Democrats and Republicans remained at loggerheads over a deal that would prevent taxes for all Americans from rising on New Year's Day.

One hour before they had hoped to present a plan, Democratic and Republican Senate leaders said they were still unable to reach a compromise that would stop the automatic tax hikes and spending cuts that could push the U.S. economy back into recession.






"There are still serious differences between the two sides," said Senate Democratic leader Harry Reid.

Progress still appeared possible after the two sides narrowed their differences on tax increases and Republicans indicated they would withdraw a contentious proposal to slow the growth of Social Security retirement benefits.

Failure to secure a deal would deliver a heavy blow to the U.S. economy just as it is showing signs of a quicker recovery. Planned tax increases and spending cuts would suck $600 billion out of the economy and again force up unemployment, which had shown signs of improving.

Senate Republican leader Mitch McConnell talked several times to Vice President Joe Biden by phone in the hope of breaking the standstill. "I'm willing to get this done, but I need a dance partner," McConnell said.

Any agreement needs to be rushed through both chambers of Congress before midnight on Monday. But, even if the two sides reach a deal, procedural barriers in the Senate and the House of Representatives make quick action difficult.

Buoyed by his re-election in November, President Barack Obama has insisted that any deal must include a tax increase on the wealthiest Americans, who have seen their earnings rise steadily over the past decade at a time when income has stalled for the less affluent.

Many conservative Republicans in the House of Representatives oppose a tax hike on anyone, no matter how wealthy.

The two sides were close to agreeing to raise taxes on households earning around $400,000 or $500,000 a year - higher than Obama's preferred threshold of $250,000 - several senators told reporters.

Republicans aim to pair any tax increase with government spending cuts to benefit programs that are projected to grow ever more expensive as the population ages in coming decades.

But their proposal to slow the growth of Social Security benefits by changing the way they are measured against inflation met fierce resistance from Democrats. Obama included the proposal, known as "chained CPI," in an earlier proposal, but many of his fellow Democrats remain opposed.

'POISON PILL'

"We consider it a poison pill - they know we can't accept it. It is a big step back from where we were on Friday," a Senate Democratic aide said.

Several Senate Republicans said they would support taking that idea out of the discussion. "Most of us agree the chained CPI is off the table in these negotiations," Senator John McCain said on Twitter.

In a rare appearance on NBC's "Meet the Press," Obama pressured lawmakers to reach a deal.

"If people start seeing that on January 1st this problem still hasn't been solved... then obviously that's going to have an adverse reaction in the markets," he said, adding that he had offered Republicans significant compromises that had been rejected repeatedly.

Obama said he would try to reverse the tax hikes for most Americans if Congress fails to act.

John Boehner, the House speaker, rejected Obama's accusations that Republicans were not being amenable to compromise.

"The president's comments today are ironic, as a recurring theme of our negotiations was his unwillingness to agree to anything that would require him to stand up to his own party," he said in a statement. (Additional reporting by Tabassum Zakaria, Jeff Mason, David Lawder, Fred Barbash and Richard Cowan. Writing by Andy Sullivan; editing by Alistair Bell and Jackie Frank)

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Autonomy’s Lynch defends record as HP confirms Federal probe






LONDON (Reuters) – Mike Lynch, the founder of the software firm sold to Hewlett-Packard last year in a deal tainted by accusations of accounting fraud, said he would defend the company’s accounts to U.S. Federal investigators.


HP confirmed in a filing late on Thursday that the U.S. Department of Justice was investigating Autonomy‘s books.






The PC and printer maker bought the British company for $ 11 billion last year to lead its push into the more profitable software sector.


Autonomy did not deliver the growth expected, resulting in Lynch’s departure earlier this year.


But worse was to come last month when HP wrote off some $ 5 billion of the company’s value and accused its former management of accounting improprieties that inflated its value.


The Silicon Valley company said it had passed information from a whistleblower to the U.S. Department of Justice, the SEC and Britain’s Serious Fraud Office.


“On November 21, 2012, representatives of the U.S. Department of Justice advised HP that they had opened an investigation relating to Autonomy,” it said in the filing.


“HP is cooperating with the three investigating agencies.”


Lynch launched a robust defense of his track record almost immediately after HP made the accusations.


He said on Friday that he was still waiting for a detailed calculation of HP’s $ 5 billion writedown of Autonomy’s value and a published explanation of the allegations.


“Simply put these allegations are false, and in the absence of further detail we cannot understand what HP believes to be the basis for them,” he said in a statement.


“We continue to reject these allegations in the strongest possible terms. Autonomy’s financial accounts were properly maintained in accordance with applicable regulations, fully audited by Deloitte and available to HP during the due diligence process.”


Lynch said he had not been approached by any regulatory authority, but he would co-operate with any investigation and looked forward to the opportunity to explain his position.


HP has refused to concede to Lynch’s demands for more information about the allegations.


“While Dr. Lynch is eager for a debate, we believe the legal process is the correct method in which to bring out the facts and take action on behalf of our shareholders,” it said in response to an open letter from Lynch last month


“In that setting, we look forward to hearing Dr. Lynch and other former Autonomy employees answer questions under penalty of perjury.”


(Reporting by Paul Sandle; Editing by Helen Massy-Beresford)


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‘The Hobbit’ stays atop box office for third week






LOS ANGELES (AP) — “The Hobbit: An Unexpected Journey” continues to rule them all at the box office, staying on top for a third-straight week with nearly $ 33 million.


The Warner Bros. fantasy epic from director Peter Jackson, based on the J.R.R. Tolkien novel, has made $ 222.7 million domestically alone.






Two big holiday movies — and potential awards contenders — also had strong openings. Quentin Tarantino‘s spaghetti Western-blaxploitation mash-up “Django Unchained” came in second place for the weekend with $ 30.7 million. The Weinstein Co. revenge epic, starring Jamie Foxx and Christoph Waltz, has earned $ 64 million since its Christmas Day opening.


And in third place with $ 28 million was the sweeping, all-singing “Les Miserables.” The Universal Pictures musical starring Hugh Jackman and Anne Hathaway has made $ 67.5 million since debuting on Christmas.


Entertainment News Headlines – Yahoo! News





Title Post: ‘The Hobbit’ stays atop box office for third week
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