• New York Post, Wednesday, August 19, 2009 10:34 PM

A short-lived experiment with newspaper employee ownership is coming to an end. With Tribune navigating the bankruptcy process, its creditors are expected to dump the company's employee stock ownership plan, leaving workers with worthless shares, say insiders.

In 2007, real-estate tycoon Sam Zell used the stock plan, called an ESOP, to gain tax benefits on his $8.2 billion buyout of the company. The plan made employees official owners, with 100% of the equity but no say over management or the board. However, in the bankruptcy, the staffers are viewed as common shareholders with less claim than other creditors.

Experts say it is important to note that workers didn't directly fund the plan. Instead, the company agreed to make contributions like it would to other benefit plans, such as a 401(k) or pension. The contributions were supposed to be invested in Tribune stock. But Tribune filed for bankruptcy before it made its first contribution.

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