Tribune Co. Files Reorg Plan

Tribune Monday (April 12) filed its reorganization plan with the U.S. States Bankruptcy Court for the District of Delaware. The plan, Tribune said in a press release, would “keep the company intact, sharply reduce its debt and provide it with sufficient liquidity to expand its business in the future.”

The company could emerge from bankruptcy later this year, once Tribune creditors and the Court approve the plan.

That may not go as smoothly as Tribune would like. The same day Tribune filed, 24 creditors owed $3.6 billion—including Goldman Sachs Group, Avenue Investments, Marathon Asset Management and Oaktree Capital Management—filed an objection to Tribune’s plan, reportedly calling the plan “dead on arrival.”

Tribune’s reorganization gives its biggest lenders led by J.P. Morgan Chase & Co. and Angelo Gordon & Co., 91 percent equity in the reorganized company, plus cash and debt.
The rest goes to junior note holders.

“We’re looking forward to emerging from Chapter 11 and building on the momentum we’ve generated,” said Randy Michaels, CEO of Tribune.

Tribune filed for bankruptcy in Dec. 2008.