Tribune Gets Closer to Emerging From Bankruptcy

Tribune is getting closer to emerging from bankruptcy. The embattled newspaper and TV owner Tuesday (Oct. 12) announced an agreement on a reorganization plan with more of its senior lenders and unsecured creditors.

The agreement reached by Tribune’s Official Committee of Unsecured Creditors, Oaktree Capital Management, L.P., Angelo, Gordon & Co., L.P., and JPMorgan Chase Bank, N.A. expands on the previously announced settlement late in September with Oaktree and Angelo Gordon.

Tribune plans to file a reorganization plan and disclosure statement incorporating both settlements with the U.S. Bankruptcy Court for the District of Delaware by Friday, Oct. 15.
The settlement came about as a result of the court-ordered mediation overseen by the bankruptcy court, and was approved by the court and a Special Committee of Tribune’s board of directors.

When Tribune emerges from bankruptcy, its senior lenders will own the company, including JPMorgan.

Tribune filed for bankruptcy in Dec. 2008, just one year after Sam Zell took the company private in a leveraged buyout that left the company crushed under debt. Since then, Tribune has been fighting with its creditors.