Tribune Reveals Plan to Emerge from Bankruptcy

The Tribune Co. holds a number of news stations and newspapers around the country, including the Chicago Tribune and local stations like KTLA. Recently, the massive media company was approved with a plan to emerge from bankruptcy. The judge on the case officially confirmed that the company can transfer ownership of their entire company to a group of senior creditors at Oaktree Capital Management. This Los Angeles investment fund will then help Tribune Co. to emerge from their current financial situation.

The judge’s order will set in motion a process that will allow Tribune to emerge from bankruptcy protection later this year. The media company will also be able to transfer its radio, TV and news broadcast licenses to new owners. The Tribune bankruptcy case has been going on for 3 and a half years, so this new decision is a huge relief to all involved. Tribune will also be able to work on other financial issues that it needs to verify before the company can officially emerge from bankruptcy. Tribune will be restructuring its corporate ladder and nailing down $1.1 billion in new debt financing. They will also need $300 million in a line of credit.

Some of Tribune’s creditors want to appeal the verdict which was given Monday by a Delaware bankruptcy judge. Yet the Chicago Tribune does not think that the creditors will succeed in gaining an appeal. The new owners of Tribune, Oaktree, Angelo, Gordon & Company, and JPMorgan Chase, will need to plan a board regarding the Tribune and fill the slot for CEO. While there is still plenty to decide, the bankruptcy judge’s decision to approve the plan has eliminated a lot of uncertainty around this long-standing case. Talk to bankruptcy attorney if you need to file for bankruptcy too to get a fresh start and eliminate your debt.