After 27 months of legal wrangling, Tribune Co. and its creditors are finally headed into what could be the deciding chapter of the company’s tangled bankruptcy saga.
The case will enter what bankruptcy law practitioners call confirmation hearings Monday, and for the next two weeks U.S. Bankruptcy Judge Kevin Carey in Delaware will hear evidence from an army of lawyers arguing for and against two competing visions of how to restructure the Chicago-based media conglomerate, which owns the Los Angeles Times and KTLA-TV Channel 5.
Many experts say the Tribune Co. case has become Exhibit A for concerns that the bankruptcy process can get gridlocked by hedge funds and other investors that buy corporate debt for pennies on the dollar after a company files for Chapter 11 protection and then try to extract a profit via aggressive legal tactics.
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