Tribune Co. files bankruptcy reorganization plan

Plan would allow Tribune to keep newspapers and broadcast stations while wiping out most of its debt

April 12, 2010

The Tribune Co. filed a bankruptcy reorganization plan Monday that would allow it to keep its newspapers and broadcast stations while wiping out most of its debt, even as two groups of lenders vowed to unravel a pivotal part of the proposal. If the plan is approved, ownership of the media company would go to a group of lenders, including JPMorgan Chase & Co. and Angelo, Gordon & Co. Those lenders support the plan and an underlying settlement over allegations of fraudulent conduct in financing the 2007 leveraged buyout that left Tribune mired in debt. Tribune, which publishes The Baltimore Sun, the Los Angeles Times, Chicago Tribune and other daily newspapers and owns TV and radio stations, has described the settlement as "global" and key to emerging from Chapter 11 bankruptcy protection. The plan filed Monday incorporates elements of that deal, which came together 16 months after Tribune filed for Chapter 11 bankruptcy protection because it couldn't fully repay debts totaling $12.7 billion. Two groups of lenders who say they are owed nearly $5 billion combined appear determined to object to the settlement.

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