Tribune Creditors File Three Competing Reorganization Plans
November 1, 2010 at 3:53 AM (PT)
Three groups of TRIBUNE CO. creditors have submitted their own reorganization plans for the company, competing with TRIBUNE's own proposal (NET NEWS 10/26).
One plan, filed by a group headed by AURELIUS CAPITAL MANAGEMENT and WILMINGTON TRUST CO., would pay creditors some money up front and would hold back the rest in escrow pending resolution of lawsuits over the TRIBUNE 2007 buyout. A plan offered by KING STREET CAPITAL includes settlements of certain claims to avoid lawsuits, and another plan by senior lenders (the "Step-One Credit Agreement Lenders," including ALDEN GLOBAL CAPITAL and GREYWOLF CAPITAL) includes the right to sue the banks which financed the latter part of the 2007 buyout. TRIBUNE filed its own plan with the support of creditors JPMORGAN CHASE, OAKTREE CAPITAL MANAGEMENT, and ANGELO, GORDON AND CO. on OCTOBER 22nd.
In addition, a group of creditors has filed suit against the lenders of the final stage of the buyout, including JPMORGAN CHASE, MERRILL LYNCH CAPITAL CORP, BANK OF AMERICA and CITIGROUP.