Tribune Reorganization Plan Deal Falls Apart
August 20, 2010 at 12:53 PM (PT)
It's back to the drawing board for TRIBUNE CO., which told U.S. Bankruptcy Court TODAY that the key lenders who supported its proposed reorganization plan have walked away from the deal and that it will file a new amended plan by AUGUST 27th.
The company's Chapter 11 plan lost the support of key backers J.P. MORGAN CHASE AND CO. and ANGELO GORDON AND CO. this week in the wake of an independent examiner's allegation that the company's buyout in 2007 involved some measure of fraud. J.P. MORGAN CHASE may join a committee of unsecured creditors in filing a competing reorganization plan with the court, while TRIBUNE attorney JAMES CONLAN of SIDLEY AUSTIN said that the company may sue over the fraud issues.