Message from Randy and Gerry/Progress in Mediation

From: Tribune Communications
Sent: Tuesday, September 28, 2010 11:30 AM
Subject: Message from Randy and Gerry/Progress in Mediation


Today we are announcing a significant step forward in the effort to resolve our Chapter 11 proceedings. As a result of the court-ordered mediation we’ve been engaged in over the last week or so, we have reached a settlement with Oaktree Capital Management and Angelo Gordon & Co. on a plan of reorganization for the company. The settlement also has been approved by the special committee of Tribune’s board of directors overseeing our Chapter 11 process.

As Don Liebentritt, Tribune’s chief restructuring officer says in the attached press release, “The plan addresses two primary issues that are fundamental to a successful reorganization of Tribune. First, it enables the company to exit Chapter 11 and distributes the equity of the reorganized Tribune and its subsidiaries to the holders of the Initial and Incremental Term Loan claims. Second, to the extent not settled prior to confirmation, it establishes a litigation trust which preserves all claims identified by the Examiner’s Report relating to ‘Step 2’ of the company’s going-private transaction. We remain confident that additional settlements will be reached.”

Additional details of the settlement can be found in the press release. We’ll continue to keep you informed of developments in our Chapter 11 case as things move forward.


Randy and Gerry