According to several reports, Minneapolis' Star Tribune filed for bankruptcy protection under Chapter 11 due to falling advertising sales. The Star Tribune joins the Tribune Co. (owner of the Chicago Tribune and Los Angeles Times) that filed for bankruptcy on Dec. 8.

The Star Tribune listed its assets between $100 million and $500 million and debt of between $500 million and $1 billion, Bloomberg reports. Ad sales have fallen by $75 million in two years and circulation has fallen by 6.7 percent in a six-month period at the end of 2008.

According to publisher Chris Harte, "We intend to use the Chapter 11 process to make this great Twin Cities institution stronger, leaner and more efficient."

Businesses file for Chapter 11 when they are unable to pay debt or creditors. Chapter 11 is basically reorganization of the company, not liquidation. After filing for Chapter 11, most companies remain in control of business operations. If a businesses' debts exceed its assets, then the court can decide to hand over all of their rights and interests to the company's creditors.

Source: Bloomberg, Editor & Publisher, US Courts