Tribune Gets Court OK To Delay Sending Reorg Plan To Creditors For Vote
May 28, 2010 at 3:42 PM (PT)
TRIBUNE CO. received permission from U.S. Bankruptcy Court Judge KEVIN J, CAREY to delay sending its reorganization plan to creditors for voting in order to try and settle its dispute with a group of junior lenders about how to describe their proposed payment, reports BLOOMBERG BUSINESSWEEK.
TRIBUNE attorney BRYAN KRAKAUER told the court that the company "should have disclosure wrapped up next week." The company's plan includes swapping 90% of the company to senior lenders for cancellation of part of its $8.7 billion debt. It also includes full indemnity for SAM ZELL and lenders for fraud claims arising from the initial buyout. A hearing on the reorganization is scheduled for AUGUST, with a vote of creditors required before then.