Tribune Co.’s creditors have until Oct. 15 to file alternative proposals for dividing up ownership of the parent company of the Los Angeles Times and KTLA-TV can pay creditors and exit bankruptcy, a judge said Tuesday.
U.S. Bankruptcy Court Judge Kevin J. Carey set a deadline for various groups of warring creditors to file competing reorganization plans. Tribune will meet today with more than a dozen lawyers, financial advisers and the Delaware bankruptcy judge who is leading court-sponsored mediation efforts.
Tribune has joined two of its largest senior creditors in support a plan to divide the ownership of the company among the lenders who helped finance the publisher’s 2007, $8 billion leveraged buyout. Lower ranking creditors want to sue those lenders, claiming that the buyout was a fraudulent transfer that benefited only the banks and Tribune’s shareholders.
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