Saturday, October 23

Tribune presents second plan to exit

Tribune Co. filed its latest plan to emerge from Chapter 11 protection late Friday, hoping it had sufficient creditor backing to win a Delaware bankruptcy court's confirmation and end its contentious two-year bankruptcy.

But the Chicago-based media firm is by no means assured of success even though it filed the reorganization plan jointly with the Official Committee of Unsecured Creditors, JPMorgan Chase and hedge funds Oaktree Capital Management and Angelo, Gordon & Co.

By Friday, other creditors seeking a richer payout from the bankruptcy estate are expected to present competing plans for concluding the restructuring, which has been rocked by shifting alliances and pitched legal battles over how much creditors should receive and who should be held responsible for paying them.

Aurelius Capital Management and a group calling itself the Step One Credit Agreement Lenders, which holds $768 million worth of senior claims, are mulling filing separate plans, sources said.

This is the second reorganization plan Tribune Co. has presented to a Bankruptcy Court in Delaware, and it includes pacts brokered with leading creditor groups in recent weeks by U.S. Bankruptcy Judge Kevin Gross, a court-appointed mediator.

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