Tribune to Appeal Tax Court Ruling

Sep 28, 2005  •  Post A Comment

Newspaper and broadcasting group Tribune said late Tuesday that it will appeal a U.S. Tax Court ruling that could put the company on the hook for $1 billion in tax payments.

The ruling related to a 1998 tax-free reorganization of Matthew Bender, a former spinoff of the Times Mirror Co., which Tribune acquired in 2000, along with the tax issue ruled upon Tuesday.

While the company was unsure exactly how much the tax bill would be, it said it could end up hitting $1 billion, though deductions for state taxes and interest could reduce the figure to around $850 million.

Tribune had set aside around $250 million for the tax dispute and as a result will issue commercial paper to pay the tax immediately.