Tribune bankruptcy plan dissolves after negotiations with creditors fail
By Randall Chase, APFriday, August 20, 2010
Tribune Co. says negotiations have failed
WILMINGTON, Del. — The Tribune Co.’s plan to emerge from bankruptcy has blown up after the failure of negotiations with creditors on a consensual reorganization plan.
Attorneys are telling a Delaware bankruptcy judge that Tribune has been unable to bring parties in its bankruptcy case together, and that JPMorgan Chase and distressed-debt specialist Angelo, Gordon & Co. have dropped out a settlement agreement that would have left them among the new owners of the company.
A Tribune attorney says the company will file amendments to its current plan next week in a final effort to achieve support from creditors.
If the creditors don’t go along, Tribune is considering litigation over fraudulent transfer claims related to its 2007 leveraged buyout.
