Monday, 27 June 2016
Last updated 2 days ago
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.