December 31, 2012
Emerges with Portfolio of Profitable Assets, Strong Liquidity and New Board of Directors
Tribune Company announced today that it has successfully emerged from
its Chapter 11 restructuring process. The company’s plan of
reorganization was confirmed by the U.S. Bankruptcy Court for the
District of Delaware in July, and the Federal Communications Commission
granted Tribune the necessary transfer applications and waivers in
November. Tribune’s plan of reorganization officially became effective
today, Dec. 31, 2012, and distributions to creditors have been
initiated.
“Tribune emerges from the bankruptcy process as a multi-media company
with a great mix of profitable assets, strong brands in major markets
and a much-improved capital structure,” said Eddy Hartenstein, Tribune’s
chief executive officer. “The company’s greatest asset, however, is its
employees who, individually and collectively, have remained focused on
serving our viewers, readers, advertisers and communities with a
single-minded sense of purpose and dedication. I want to thank all our
employees for their talent and effort throughout this four-year
process.”
In connection with emergence, Tribune closed on a new $1.1 billion
senior secured term loan and a new $300 million asset based revolving
credit facility. The term loan will be used to fund certain required
payments under the plan of reorganization, and the revolving credit
facility will be used to fund ongoing operations.
In addition, Tribune’s pre-petition credit facilities and outstanding
notes and debentures were cancelled and extinguished, and its
pre-petition common stock was cancelled. Upon completion of all
distributions under the plan of reorganization, Tribune will have issued
to former creditors a mix of approximately 100 million shares of new
class A common stock and new class B common stock and new warrants to
purchase shares of new class A or class B common stock. Former creditors
entitled to receive a distribution of Tribune’s new common stock or new
warrants are encouraged to review the information and documents which
will be posted to Tribune’s website at www.tribune.com relating to such
securities, including Tribune’s Amended and Restated Certificate of
Incorporation, Amended and Restated Bylaws, the warrant agreement
setting forth the terms of the new warrants and other information,
including FAQs with respect to distributions under the plan of
reorganization.
“In accordance with our restructuring plan, Tribune’s subsidiary
creditors and vendors are receiving payment in full—100% recovery of
what they are owed,” said Hartenstein. “These long-term relationships
are very important to the company and we are pleased to have
successfully resolved these obligations.”
The company also announced its new Board of Directors, effective
immediately: Bruce Karsh, Ken Liang, Peter Murphy, Ross Levinsohn, Craig
A. Jacobson, Peter Liguori, and Eddy Hartenstein.
Tribune’s new Board of Directors will convene its first meeting in
the next several weeks, at which time it will define the roles of its
members, its committee structure, and designate and ratify the company’s
executive officers. Chief executive officer Eddy Hartenstein will
remain in his current role until that time.
# # #
Cautionary Statement Regarding Forward-Looking Statements
The information contained herein may include certain forward-looking
statements. Forward-looking statements reflect various estimates and
assumptions by Tribune Company and are subject to risks, trends and
uncertainties that could cause actual results and achievements to differ
materially from those expressed in such statements. Whether or not any
such forward-looking statements are in fact achieved will depend upon
future events, some of which are not within the control of Tribune
Company. Readers are cautioned not to place undue reliance on such
forward-looking statements. The words “believe,” “expect,” “anticipate,”
“estimate,” “could,” “should,” “intend” and similar expressions
generally identify forward-looking statements.
About Tribune Company
TRIBUNE is one of the country’s leading multimedia companies,
operating businesses in publishing, digital and broadcasting. In
publishing, Tribune’s leading daily newspapers include the Los Angeles
Times, Chicago Tribune, The Baltimore Sun, Sun Sentinel (South Florida),
Orlando Sentinel, Hartford Courant, The Morning Call and Daily Press.
The company’s broadcasting group operates 23 television stations, WGN
America on national cable, the national multicast network Antenna TV and
Chicago’s WGN-AM. Popular news and information websites complement
Tribune’s print and broadcast properties and extend the company’s
nationwide audience.
SOURCE: Tribune Company
Posts
