Tribune Gets OK On Expanded Reorganization Deal

Tying Up Any Loose Ends

The TRIBUNE COMPANY had announced an expanded agreement with its Official Committee of Unsecured Creditors, OAKTREE CAPITAL MANAGEMENT, L.P., ANGELO, GORDON & CO, L.P., and JP MORGAN CHASE BANK, N.A. on its reorganization. This new deal expands upon the previously-announced settlement with OAKTREE and ANGELO GORDON and has been endorsed by U. S. Bankruptcy Court Judge KEVIN GROSS and the Special Committee of TRIBUNE’s Board of Directors. 

"With the able assistance of JUDGE GROSS, we continue to achieve success in our mediation efforts, and are pleased to have now expanded the plan settlement to include the Official Committee of Unsecured Creditors," TRIBUNE Chief Restructuring Officer DON LIEBENTRITT said. "The additional value being allocated to our bondholders and other unsecured creditors represents a fair and equitable settlement for all of our constituencies. We remain confident that TRIBUNE continues on a path toward resolution of its Chapter 11 cases that maximizes the value of the bankruptcy estates, preserves all stakeholders’ legitimate entitlements and enables the company to conclude its bankruptcy proceedings as soon as possible."

New in this epanded settlement is the contribution of $120 million in cash by recipients of pre-bankruptcy payments on the Incremental tranche of the TRIBUNE Senior Loan and the Bridge Loan facilities through an optional settlement of those claims, with the arrangers for those facilities, which will help to ensure that the estates receive the full settlement payment on the plan’s effective date. This on top of additional contributions by holders of the Senior Loans, allows for TRIBUNE’s bondholders to receive $420 million, representing 32.73 cents on the dollar upon emergence plus their interest in a litigation trust, and provides for trade creditors of Tribune’s operating subsidiaries to be paid in full.

The company will file a plan of reorganization and disclosure statement incorporating both settlement agreements with the U.S. Bankruptcy Court for the District of DELAWARE by FRIDAY, OCT. 15th.

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