Two Creditors File Own Tribune Reorganization Plan
September 20, 2010 at 4:21 AM (PT)
Two creditors of TRIBUNE CO. filed their own reorganization plan FRIDAY (9/17). OAKTREE CAPITAL MANAGEMENT L.P. and ANGELO GORDON AND CO. filed the plan as a contingency if mediation scheduled for before the end of the month fails to produce a consensus plan for the company to emerge from bankruptcy. The OAKTREE-ANGELO GORDON plan would create a litigation trust to pursue lawsuits over TRIBUNE's controversial 2007 buyout by SAM ZELL.
A memo by CEO RANDY MICHAELS and COO GERRY SPECTOR to TRIBUNE STAFF late FRIDAY said that while they hoped the mediation would succeed, the creditors' plan "may provide the next best alternative."