Tribune’s Bankruptcy Plan Comes Under Fire

By Andrew Gauthier 

Associated Press

The Tribune Co. would give ownership of the Los Angeles Times, Chicago Tribune and other media properties to its main creditors under a bankruptcy reorganization plan that calls for wiping out most of the debt from an ill-timed buyout engineered by real estate mogul Sam Zell.

Although some creditors have backed key elements of the proposal submitted Monday, the plan still faces stiff opposition from two groups of lenders that have derided it as a one-sided deal negotiated by self-interested parties. One group called a critical part of the plan “dead on arrival.”

Bolstered by a settlement announced last week, the Tribune Co. is hoping to win court approval of the plan later this year to end a contentious process that started in December 2008 More…