Hedge Funds Win OK On Tribune Plan

Jul 24 2012 | 11:43am ET

As expected, a federal judge yesterday approved a bankruptcy exit plan that will hand the Tribune Co. to a group of lenders led by hedge funds. And, as expected, other lenders, including Aurelius Capital Management, have appealed the decision.

U.S. Bankruptcy Judge Kevin Carey's approval was expected; he said he would OK the deal earlier this month after rejection Aurelius' objections. The move, if it withstands the appeal, will allow the group of creditors led by Angelo Gordon & Co., Oaktree Capital Management and JPMorgan Chase to take control of the newspaper publisher and broadcaster by the end of the year.

It also allows the Federal Communications Commission to begin considering Tribune's application to transfer its television and radio licenses to the new owners.

Aurelius and other creditors filed separate appeals yesterday, and asked that Carey's ruling be stayed pending them. The creditors say a judge should not have approved the settlement of legal claims against banks that financed Tribune's 2007 leveraged buyout, which left the company with $13 billion in debt.


In Depth

PAAMCO: Will Inflation Deflate the Asset Bubble?

Jan 30 2018 | 9:49pm ET

As the U.S. shifts from monetary stimulus to fiscal stimulus, market pricing should...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Boost Hedge Fund Marketing ROI By Raising Your ROO

Feb 14 2018 | 9:57pm ET

Tasked with delivering returns on client capital, a common dilemma for many alternative...

 

FINalternatives Trending

From the current issue of