Tribune Co. Faces More Challenges in Bankruptcy Resolution

By Mike Taylor Comment

tribune05142010.pngTribune Co., the debt-addled newspaper and TV station operator behind the Chicago Tribune, the Los Angeles Times, the Baltimore Sun and other publications, faces new objections to its plans to exit bankruptcy, the Tribune reports:

The filings included a new objection from a previously silent group of senior creditors angry over its treatment in the company’s plan of reorganization, further splintering the all-important senior creditor class in the case.

The U.S. Department of Labor also weighed in, saying the document does not give ample disclosure to the agency’s investigation into whether Tribune Co.’s contested 2007 leveraged buyout violated federal labor laws.

A group of creditors led by Oaktree Capital had previously raised objections to Tribune Co.’s plan to leave bankruptcy. The new objections came from providers of a bridge loan that helped finance the 2007 leveraged buyout of the company.

(h/t Romenesko)