A court-appointed mediator has endorsed the terms of a new agreement negotiated between the Tribune Company and two of its major lenders: Oaktree Capital Management LP and investment firm Angelo, Gordon & Co. The deal means the Tribune Company’s exit from bankruptcy protection appears imminent.
“The plan addresses two primary issues that are fundamental to a successful reorganization of Tribune,” Tribune’s chief restructuring officer Don Liebentritt said in a statement.
More from the Wall Street Journal:
Mr. Liebentritt said the plan will allow Tribune to emerge from Chapter 11 protection under the control of some of its lenders, including Oaktree and Angelo Gordon. It also establishes a trust to pursue litigation related to the second phase of Tribune’s 2007 leveraged buyout….
The settlement comes one day after a group of so-called “step-one lenders”–14 lenders owed $730 million on the first of two financing transactions in Tribune’s 2007 leveraged buyout–filed court papers urging the bankruptcy court to reject an outline of a bankruptcy-exit plan for Tribune filed earlier this month by Oaktree and Angelo Gordon.