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BANKRUPTCY WEEK AHEAD:Tribune Seeks Approval On Chapter 11 Outline
By admin | May 18, 2010
BANKRUPTCY WEEK AHEAD:Tribune Seeks Approval On Chapter 11 Outline - WSJ.com
BANKRUPTCY WEEK AHEAD:Tribune Seeks Approval On Chapter 11 Outline
By Marie Beaudette Of DOW JONES DAILY BANKRUPTCY REVIEW
Tribune Co. (TRBCQ) on Thursday will ask the Wilmington, Del., bankruptcy court to approve an outline of its Chapter 11 restructuring plan, which will allow the media giant to send the plan to creditors for a vote.
The plan is based on a settlement stemming from the company’s 2007 leveraged buyout deal, which saddled the company with billions in debt. If approved, the pact will shield real-estate mogul Sam Zell, the architect of the LBO, J.P. Morgan Chase & Co. (JPM), Citigroup Inc. (C) and others involved in the deal from lawsuits alleging fraud, mismanagement and profiteering stemming from the transaction.
Some Tribune creditors, however, have already voiced their opposition to the settlement. A group of lenders owed $3.6 billion says the settlement would give a “free pass” to those who crafted the buyout deal.
Bondholders represented by Wilmington Trust Corp. (WL) also balked at the proposed settlement, calling it the product of “smoky-backroom negotiations.”
Tribune, which publishes the Los Angeles Times, Chicago Tribune and Baltimore Sun, filed for Chapter 11 protection in December 2008.
Regardless of the outcome of Thursday’s hearing, Tribune’s Chapter 11 plan confirmation hearing won’t start until Aug. 16 to give a recently appointed examiner the chance to conduct an investigation into the buyout deal.
On Wednesday, Washington Mutual Inc. (WAMUQ) will ask the Delaware bankruptcy court for permission to send its Chapter 11 repayment plan to creditors for a vote.
The plan details how the company, the former parent of Washington Mutual bank, plans to dole out the more than $7 billion it has accumulated since it filed for Chapter 11 protection in 2008 after WaMu was seized by regulators and sold to J.P. Morgan Chase.
The $7 billion that Washington Mutual has collected will be spread among creditors owed a total of $8 billion.
The company filed its creditor-repayment plan after it announced a settlement with J.P. Morgan. If it’s approved by the bankruptcy court, the deal will end a number of legal battles over the seizure of WaMu bank.
Topics: money talks, Ok, Just Talk |
