Bankruptcy judge close to allowing Tribune to solicit votes for proposed reorganization plan
By Randall Chase, APFriday, June 4, 2010
Tribune close to soliciting reorganization votes
DOVER, Del. — The Tribune Co. is one step closer to soliciting support from creditors for its Chapter 11 reorganization plan.
A Delaware bankruptcy judge indicated Friday that he could sign off early next week on documents describing and soliciting support for Tribune’s plan.
Attorneys spoke with the judge Friday to clarify how unsecured lenders who provided $1.6 billion in financing to Tribune in 2007 would be treated if they vote against the plan.
Tribune agreed to clarify that the lenders could receive $74 million, and that Tribune is allocating $333 million in its plan to satisfy intercompany claims from its subsidiaries.
Tribune, which owns the Los Angeles Times, Chicago Tribune, The (Baltimore) Sun and other dailies, along with 23 TV stations, filed for bankruptcy protection in 2008.
