Tribune Company Takes Another Step Towards Chapter 11 Exit
Looks like the Tribune Company has weathered David Carr‘s story in the New York Times after all. Days after saying the story–which labeled Trib. Co’s upper management as a “frat house”–had possibly done irreversible harm to the company’s bankruptcy negotiations, the company reached a mediator-approved agreement with its major creditors.
“With the able assistance of [mediator] Judge Gross, we continue to achieve success in our mediation efforts, and are pleased to have now expanded the plan settlement to include the Official Committee of Unsecured Creditors,” Don Liebentritt, Tribune’s Chief Restructuring Officer, said in a press release. ”The additional value being allocated to our bondholders and other unsecured creditors represents a fair and equitable settlement for all of our constituencies. We remain confident that Tribune continues on a path toward resolution of its Chapter 11 cases that maximizes the value of the bankruptcy estates, preserves all stakeholders’ legitimate entitlements and enables the company to conclude its bankruptcy proceedings as soon as possible.”
As the LA Times notes, however, several junior creditors are still not on board–including Aurelius Capital Management. The story described Aurelius as “litigious” in its bankruptcy negotiations. That said, the Times went on to put a positive spin on the story however, reporting that the new agreement “increases up-front payments to junior bondholders like Aurelius by $120 million, bringing their recovery to $420 million, or 32.73 cents on the dollar.”
Previously on FBLA: NYT Story on Tribune Company May Have Killed Bankruptcy Negotiations
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