As Tribune Creditors Renew Battle, NYT Provides Fodder

By Andrew Gauthier 

Chicago Tribune

Mediation talks broke down once again in the Tribune Co. bankruptcy case this week, sending rival creditor groups back to their corners to prepare competing restructuring plans for the hobbled media conglomerate.

Sources close to the situation said that at least three groups, including aggressive hedge fund Aurelius Capital Management and the Official Committee of Unsecured Creditors, are prepared to file separate plans outlining opposing formulas for resolving the 22-month-old case, setting the stage for a renewed battle over splitting up the company’s value.

While a court-ordered mediator has yet to abandon the effort to find a friendly settlement, the adversaries remain deeply divided More…