Objections Arise To Tribune Bankruptcy Disclosure Statement
May 14, 2010 at 4:24 AM (PT)
The emergence of TRIBUNE CO. from bankruptcy has hit some potholes on the road, with objections to its Chapter 11 disclosure statement being filed with U.S. Bankruptcy Court by the Department of Labor and senior creditors.
In the court filings, a new dissident senior creditor group joined other senior creditors and the Labor Department in raising various objections to the company's disclosure plan, with complaints centering on how the settlement plan was reached and disclosure of the issues surrounding SAM ZELL's buyout of the company and whether it was fraudulent. The Department of Labor's filing said that the disclosure statement should say more about the buyout issues and provisions indemnifying ZELL from liability for Employee Retirement Security Act violations. A hearing in which TRIBUNE will seek court approval for an outline of the Chapter 11 restructuring proposal, which would then put the plan up for a creditors' vote, is set for THURSDAY (5/20); hearings for approval of the actual plan remain scheduled for AUGUST 16th.
In addition, the transfer of TRIBUNE's licenses as part of the company's reorganization plan has been made a "permit-but-disclose" ex parte proceeding by the FCC, at the request of TRIBUNE's counsel. Petitions to deny the transactions and the continuing of the company's cross-ownership waivers are due no later than JUNE 14th in Docket 10-104.