Tribune Files Reorganization Plan
October 25, 2010 at 4:06 AM (PT)
As expected, TRIBUNE CO. filed a new reorganization plan to emerge from Chapter 11 bankruptcy FRIDAY, with several creditors joining the company in filing the proposal, including the Official Committee of Unsecured Creditors, JP MORGAN CHASE, OAKTREE CAPITAL MANAGEMENT and ANGELO, GORDON AND CO.
The plan is the second filed by TRIBUNE and adds a litigation trust to allow junior creditors to sue SAM ZELL and other TRIBUNE officials involved in the company's 2007 buyout for fraud.
Other creditors, including AURELIUS CAPITAL MANAGEMENT and another group called the Step One Credit Agreement Lenders, are expected to file competing plans this week. The plans come in the wake of the resignation of TRIBUNE CEO RANDY MICHAELS, who exited FRIDAY (NET NEWS 10/22).