Mediator Endorses Tribune Settlement
September 28, 2010 at 12:03 PM (PT)
The TRIBUNE COMPANY has reached agreement with OAKTREE CAPITAL MANAGEMENT, L.P. and ANGELO, GORDON & CO, L.P. on a plan of reorganization that will settle claims surrounding "Step 1" of the company's 2007 going-private transaction.
The settlement comes as a result of the court-ordered mediation requested by the company and overseen by U. S. Bankruptcy Court Judge KEVIN GROSS; it has been approved by the Special Committee of TRIBUNE Board of Directors, comprised of independent members of the company board. OAKTREE and ANGELO GORDON, who will be co-proponents of this plan, both hold significant amounts of the Initial and Incremental Term Loan of TRIBUNE COMPANY.
"The plan addresses two primary issues that are fundamental to a successful reorganization of TRIBUNE," said TRIBUNE Chief Restructuring Officer DON LIEBENTRITT. "First, it enables the company to exit Chapter 11 and distributes the equity of the reorganized TRIBUNE and its subsidiaries to the holders of the Initial and Incremental Term Loan claims. Second, to the extent not settled prior to confirmation, all claims identified by the Examiners Report relating to Step 2 of the company's going-private transaction are preserved and placed in a litigation trust. We remain confident that additional settlements will be reached."