From the Chicago Tribune
Tribune braces for competing bankruptcy plans
Still recovering from a management scandal that claimed its chief executive a week ago, Tribune Co. is bracing for its next disruption: How to cope with legal challenges from Aurelius Capital Management and other unhappy creditors seeking to upend its bankruptcy case.
Creditors face a midnight Friday deadline for submitting restructuring plans that would contest a settlement filed Oct. 22 by Tribune Co., its biggest senior creditors and the committee charged with representing the company's junior creditors.
Aurelius intends to file a competing plan, said Mark Brodsky, chairman of the litigious New York hedge fund. So does a group of senior creditors known as the SoCal lenders, one of its lawyers confirmed. Another group of bridge loan lenders represented by Wells Fargo Bank also is considering a filing, although the group's lawyer, Thomas Lauria, of White & Case, said it may end up joining another opposition camp.
Tribune Co. Co-President and Chief Restructuring Officer Don Liebentritt last week hailed the company-endorsed plan as the best way "to conclude its bankruptcy proceedings as soon as possible." But many creditors vow to fight a plan they insist continues to shortchange their interests.
"They settled amongst themselves … again," Lauria said, noting key junior creditors were absent from the negotiations.
Entire article can be read here.
No comments:
Post a Comment
For now, we're opening this blog to Anonymous comments. This will continue as long as civility rules. Disagree as you may, just keep it clean and stay on topic. No profanity, and no name calling. We reserve the right to moderate such comments, though the person who made it may come back and reword their message in a more civil way.