Bankruptcy Judge Allows Tribune to Vote for Reorganization Plan

By: Timothy McFarlin | Published: June 8th, 2010 | Category: Bankruptcy

In Delaware, a bankruptcy judge is close to allowing The Tribune Co. to initiate a voting process for a proposed reorganization plan. The company is currently seeking support from creditors for its Chapter 11 reorganization plan.

The judge said early next week, he would sign off on documents to solicit help for the plan. Meanwhile, attorneys questioned how unsecured lenders would be treated should they vote against the plan. These unsecured lenders gave nearly $1.6 billion in financing in 2007. Later, the Tribune agreed to lenders receiving $74 million and is allocating another $333 million to satisfy intercompany claims from subsidiaries.

The Tribune Company owns 23 televisions stations, The Los Angeles Times, The Chicago Tribune, Baltimore’s The Sun and others. They filed for bankruptcy protection two years ago due to high debts in relation to the company going private. The Tribune was founded back in 1847 at which time, on June 10, the Chicago Tribune published its first edition.

A merger with The Times Mirror Company, completed in June of 2000, doubled the Tribune’s size by adding more newspapers to the company’s holdings. The $8.3 billion transaction was the largest acquisition in newspaper industry history. The group’s combined reach extends to more than 80% of this country’s television households.

Tribune Interactive, one of the Tribune’s major subsidiaries, manages interactive operations of major daily newspapers’ associated websites. Its national network sites include CareerBuilder.com, Cars.com, Apartments.com and Topix.net. With over 50 websites overall, Tribune Interactive ranks high among the nation’s most prominent news and information networks. Their sites attract roughly more than 20 million visitors, monthly.

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