Tribune Reaches Deal With Creditors, Noteholders
April 8, 2010 at 2:38 PM (PT)
TRIBUNE CO. has reached agreement with creditors and noteholders on a deal that would settle all potential claims arising from the company's move from publicly-traded to privately held in 2007. The deal, supported by major creditors J.P. MORGAN, ANGELO GORDON, and CENTERBRIDGE PARTNERS and by the Official Committee of Unsecured Creditors, will be incorporated into TRIBUNE's reorganization plan.
"The company supports the resolution of our bankruptcy through a plan of reorganization that implements the terms of this agreement. The plan will allow us to resolve these cases without the distraction, expense and delay of protracted litigation, and is in the best interests of TRIBUNE and all of our constituents," said TRIBUNE Chief Legal Officer DON LIEBENTRITT.
"We're very pleased that an agreement has been reached, and we appreciate the support we've received from J.P. MORGAN, ANGELO GORDON, CENTERBRIDGE and the Committee," said CEO RANDY MICHAELS. "This will enable us to file our plan prior to next TUESDAY's court hearing. It is another significant step forward as we continue to transform our media businesses, attract and retain talented people, and seize opportunities to grow."
Under the plan, senior note holders would receive 7.4% of the company's distributable value, paid in a combination of cash, debt and stock. Senior credit facility lenders would receive cash and debt plus stock representing over 91% of the reorgamized TRIBUNE's equity. The company would then emerge from bankruptcy. The plan will be subject to a creditor vote and approval by the Court.