Thanks to a couple of hedge funds, the Tribune Co.’s newspapers and television stations are on the verge of exiting bankruptcy.
The publisher of the Chicago Tribune and hedge funds Angelo Gordon & Co. and Oaktree Capital Management were forced to alter the bankruptcy exit plans after 14 other creditors rejected their original plan on Monday. The sides did not indicate how the proposal was changed, and the Tribune Co. said only that U.S. Bankruptcy Court Judge Kevin Gross had “endorsed” the plans.
Gross, who oversaw two days of mediation between creditors, simply said that the settlement would “lead to additional constructive discussions.” The new plans still requires a creditor vote and the unsecured creditors committee plans to oppose the $5.5 billion package.
Meanwhile, Tribune’s creditors continue to battle over its 2007 buyout. Some members of the creditors committee want to sue others, namely the banks that financed the buyout.