Tribune Reworking Disclosure Statement
May 25, 2010 at 4:18 PM (PT)
U.S. Bankruptcy Court Judge KEVIN J. CAREY has given TRIBUNE CO. another week to edit its disclosure statement for its reorganization plan, but has ordered that the plan include two-page letters from the plan's opponents with warnings that approval of the plan would result in legal challenges.
The ruling THURSDAY augurs continued legal battling over the plan, which has encountered opposition from junior creditors and bondholders over broad indemnity provisions and issues related to the initial buyout of the company by SAM ZELL.
Company Proposes More Executive Bonuses
TRIBUNE also has added a third round of bonuses totaling $15 million for 42 top company executives, including nine of the top 10. The proposal follows the approval by the judge of $57.4 million in bonuses in two previous rounds; the bonuses myst be approved by a vote of the company's creditors.