Tribune ‘On Path' Toward Bankruptcy Exit
Media giant throws support behind unsecured creditors' agreement
By Michael Malone -- Broadcasting & Cable, 10/12/2010 5:03:42 PM
Tribune Company has voiced its support for an agreement reached by its unsecured creditors regarding a reorganization plan that would enable it to emerge from bankruptcy.
Tribune's unsecured creditors are Oaktree Capital Management, Angelo, Gordon & Co., and JPMorgan Chase Bank. The agreement would "settle certain claims surrounding both ‘Step 1' and ‘Step 2' of the company's 2007 going-private transaction," said Tribune in a statement.
This settlement expands on a previous one with Oaktree and Angelo, Gordon and is a result of court-ordered mediation by U. S. Bankruptcy Court Judge Kevin Gross. It has been endorsed by Gross and approved by the special committee of Tribune's board of directors.
"We continue to achieve success in our mediation efforts, and are pleased to have now expanded the plan settlement to include the Official Committee of Unsecured Creditors," said Tribune Chief Restructuring Officer Don Liebentritt. "The additional value being allocated to our bondholders and other unsecured creditors represents a fair and equitable settlement for all of our constituencies. We remain confident that Tribune continues on a path toward resolution of its Chapter 11 cases that maximizes the value of the bankruptcy estates, preserves all stakeholders' legitimate entitlements and enables the company to conclude its bankruptcy proceedings as soon as possible."
Sam Zell purchased the Tribune Company in December 2007. Tribune entered Chapter 11 under its ballooning debt a year later.
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