The Tribune Co. would give ownership of the Los Angeles Times, Chicago Tribune and other media properties to its main creditors under a bankruptcy reorganization plan that calls for wiping out most of the debt from an ill-timed buyout engineered by real estate mogul Sam Zell.
Despite its eroding revenue, the Tribune Co. expects to be in far better shape if its reorganization plan is approved because it wouldn’t be weighed down by so much debt.
Although some creditors have backed key elements of the proposal submitted Monday, the plan still faces stiff opposition from two groups of lenders that have derided it as a one-sided deal negotiated by self-interested parties. One group called a critical part of the plan “dead on arrival.”
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