Tribune Co. motion will delay reorganization plan

April 01, 2010

With the clock ticking down, Tribune Co. bought more time to negotiate with fractious creditors Wednesday when it filed a motion in Delaware bankruptcy court to extend until April 30 its exclusive right to propose a reorganization plan in its 15-month-old Chapter 11 case. Any extension of the "exclusivity period" requires a judge's approval. But the move takes advantage of a quirk in Delaware law, which allows Tribune to file the motion and essentially freeze exclusivity until the next scheduled court hearing on April 13. Tribune Co., which owns the Chicago Tribune, The Baltimore Sun and other media properties, already had filed four extensions as it tried to broker a compromise between sparring senior creditors and junior bondholders. Its most recent extension was to run out Wednesday.

- Tribune Newspapers

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