Tribune Co. said it settled a dispute among its main creditors by giving 91 percent of the bankrupt publisher to lenders and a smaller stake to other creditors.
The proposed settlement would avoid a new lawsuit over its 2007 buyout, which was blamed for the publisher’s bankruptcy a year later. The deal has the support of lenders, including JPMorgan Chase & Co. and Centerbridge Partners LP, along with the official committee of unsecured creditors, Tribune said yesterday in a statement.
“I think it’s a product of a lot of give and take,” creditor committee attorney Howard Seife said in an interview. “There was a lot of compromise on both sides.” More…