Tuesday, September 21, 2010

Developments in Tribune Chapter 11 Process

Monday, September 13

Today the Unsecured Creditors Committee (UCC) in our Chapter 11 process filed a motion with the Bankruptcy Court asking for standing to pursue certain alleged claims against individuals and groups connected to our 2007 going-private transaction. You may wonder why the UCC decided to file this motion while we are engaged in mediation with our various creditor groups. We believe that the UCC filed its motion because the deadline for initiating these types of claims is in early December.

The motion reads, in part, “…the December 8, 2010 statutory deadline imposed by 11 U.S.C. 546(a)(2) is looming. Because the Committee cannot risk that valuable estate claims will be forever lost by the passage of the filing deadline, it is filing the Standing Motion so the Court and parties in interest have sufficient time to address the issue of standing. In that way, complaints can be finalized and filed in advance of the statutory deadline, to the extent it becomes necessary to preserve the causes of action. Apart from obtaining standing, however, it is the Committee’s intention to stand down from further prosecution of the claims while the mediation is pending before Judge Gross.” Judge Gross is the court-appointed mediator assigned to oversee our negotiations.

As you might expect, the motion filed by the UCC is getting some media attention so we wanted you to have our perspective on it. We remain focused on the mediation process and trying to reach consensus with our creditors on a restructuring plan.

Randy and Gerry

1 comment:

Anonymous said...

eddy has randy and gerry ever been to the press room when all the presses are breaking down just curioues