Tribune Lenders Want To File Their Own Reorganization Plan
November 30, 2009 at 5:00 AM (PT)
TRIBUNE CO. lenders have filed with the U.S. Bankruptcy Court to submit its own restructuring plans for the media giant's subsidiary divisions, at odds with the company's filing to extend its own exclusive rights to file an overall bankruptcy reorganization plan for an additional four months.
A group of lenders owed $4.4 billion by the company have asked the court to terminate TRIBUNE's exclusive right to file a reorganization plan for the next four months (as the company has requested in an extension motion to be heard on TUESDAY), saying that the company's subsidiaries should not be caught in the delay while creditors investigate the company's 2007 buyout by SAM ZELL. In their filing last TUESDAY (11/24), the creditors said that a separate reorganization plan for the subsidiaries is the "clearest path to a business rehabilitation" and could pay creditors in full.
Separately, J.P. MORGAN CHASE has filed an objection to TRIBUNE's motion for extending its exclusive reorganization plan rights, saying that TRIBUNE should only get an additional 60 days rather than four months to file its own plan.