(Crain's) — The judge in Tribune Co.'s bankruptcy approved a management incentive plan that will pay bonuses of as much as $42.5 million to 640 employees.
“I think it's entirely reasonable to order this relief in these uncertain times,” Delaware Bankruptcy Judge Kevin Carey said during a hearing on the plan Tuesday.
There were no objections to the plan proposed by the Chicago-based media company, the judge noted.
Tribune, the publisher of newspapers that include the Chicago Tribune and the Los Angeles Times as well as TV outlets such as WGN-TV, has been in bankruptcy since December 2008. It filed for Chapter 11 protection from creditors a year after real estate mogul Sam Zell led an $8.2-billion leveraged buyout of the company.
Resolution of the bankruptcy is currently waiting on a decision from Judge Carey regarding two competing reorganization plans, one proposed by the company and certain creditors and the other offered by a dissident group of creditors. The judge hasn't indicated when he will deliver that decision.
Tribune bonus plan OKd by bankruptcy judge | Marketing/media | Crain's Chicago Business