Friday, 27 August 2010

Tribune files no new bankruptcy plan

NEW YORK (Reuters) – Tribune Co, struggling to win broad creditor support for its plan to emerge from bankruptcy, said on Friday it would not tweak the proposal any further at the moment.

The owner of the Los Angeles Times, Chicago Tribune and more than 20 television stations, Tribune had said it would put out a new plan on August 27. But the company decided against doing so, it told employees, citing the "ongoing nature" of talks with creditors.

A Tribune spokesman declined to comment further.
Tribune filed for bankruptcy in December of 2008, less than a year after real estate developer Sam Zell led a more than $8 billion leveraged buyout of the media company. Last month, a court examiner said in his report investigating the buyout that he thought it was likely a court would find fraud in the transaction.
That report caused a delay in the company's ability to emerge from bankruptcy, which had been set for the end of this month. It is now expected in October at the earliest.

Typically, a company's bankruptcy restructuring plan is built through a negotiating process that includes both the company and its senior creditors.
Earlier this week the Los Angeles Times reported that former Walt Disney Co CEO Michael Eisner had been in discussions with creditors to succeed Zell as Tribune chairman.

(Reporting by Caroline Humer and Dan Levine; Editing by Andre Grenon and Richard Chang)

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