Advised by Sidley Austin, Tribune Co. Files for Bankruptcy

Updated: The Tribune Co. has filed for bankruptcy, aided by the law firm Sidley Austin.

The Chicago Tribune, a newspaper owned by the company, reported the bankruptcy filing Monday afternoon. The petition was filed in federal bankruptcy court in Delaware, the Associated Press reports.

The company had faced a deadline of today to pay off a $70 million loan, prompting company officials to weigh the restructuring, the Chicago Tribune reported earlier Monday. The Tribune could have avoided a bankruptcy filing by drawing on an existing line of credit.

The company has a long-standing relationship with Sidley Austin, according to the Tribune.

Real estate developer Sam Zell bought the Tribune Co. in an $8.2 billion leveraged buyout last December. The troubled economy has hurt the newspaper’s advertising and slowed the company’s efforts to sell the Chicago Cubs, the New York Times reports.

Updated at 1:04 p.m. CT to include news of the bankruptcy filing Monday afternoon.