Junior creditor in Tribune bankruptcy case amends plan for restructuring
Aurelius Capital Management, the largest junior creditor in the Tribune Co. bankruptcy case, on Monday amended its proposed plan for restructuring the Chicago media company in an attempt to make the plan more palatable to senior creditors and the judge presiding over the Chapter 11 proceedings.
The move comes a little more than a week after U.S. Bankruptcy Judge Kevin Carey adjourned 10 days of hearings in the case with the warning that he saw problems with both the Aurelius plan and a competing plan filed by Tribune and its senior creditors that might make it impossible to approve either of them.
The amended Aurelius plan seeks to placate the senior group — which includes lender JPMorgan Chase & Co. and hedge funds Oaktree Capital Management and Angelo, Gordon & Co. — by giving these creditors a bigger slice of the reorganized company’s equity when Tribune eventually emerges from Chapter 11. The amended plan also softens the emphasis on a key legal dispute Aurelius had raised.
The hearings are to resume in mid-April. Tribune’s properties include the Los Angeles Times, the Chicago Tribune and KTLA-TV Channel 5.
