Tribune bankruptcy plan moves forward

AP News
Posted: Apr 16, 2012 6:35 PM
Tribune bankruptcy plan moves forward

A Delaware bankruptcy judge has signed off on the Tribune Co.'s latest reorganization plan and a process for creditors to vote on it.

Judge Kevin Carey said Monday that he would approve a supplemental disclosure statement by Tribune after minor revisions regarding rules for the advisory board of a litigation trust. The trust will pursue lawsuits stemming from the 2007 leveraged buyout of Tribune by billionaire Sam Zell.

Tribune's latest plan reflects the judge's ruling last week that put Zell at the bottom of the payment priority for creditors, behind a group of junior bondholders.

Tribune, which owns the Chicago Tribune, the Los Angeles Times, other major newspapers and more than 20 television and radio stations, sought bankruptcy protection in 2008 after the buyout saddled it with unsustainable debt.