Trib wins extension to file reorganization plan

Tribune Co., the media company that sought bankruptcy protection last year, won an extension to file a reorganization plan that officials are seeking to fund with the sale of assets such as Major League Baseball's Chicago Cubs.

U.S. Bankruptcy Judge Kevin Carey in Wilmington, Delaware, ruled Aug. 11 that Tribune officials had until Nov. 30 to file their turnaround plan for the newspaper publisher. The extension bars creditors and others from filing competing reorganization plans until after that date.

Officials of Chicago-based Tribune contend "progress has been made" in crafting a reorganization plan that will win creditors' backing, lawyers for the company said in a court filing last month. The extension will provide "additional time to conclude these efforts," the lawyers added.

Tribune, which owns the Los Angeles Times and Chicago Tribune newspapers along with the Cubs, sought bankruptcy protection in December, blaming a mounting debt load and a drop in advertising revenue. The baseball franchise wasn't included in the Chapter 11 filing.

Tribune officials continue to pursue potential buyers for the Cubs, which is one of the publisher's "most valuable" assets, the company's lawyers said in a July 24 court filing.

The Cubs are one of pro baseball's most popular franchises. The team drew more than 3 million spectators to 95-year-old Wrigley Field in each of the past five seasons.

Bloomberg News reported last month the company agreed to sell the franchise and Wrigley Field for $900 million to Tom Ricketts, an investment banker and chairman of Incapital LLC, according to a person familiar with the deal.

Company officials are counting on the Cubs sale to "generate substantial cash proceeds" that will have a "material impact" on the reorganization plan, the July 24 filing said.

The case is In re Tribune Co., 08-13141, U.S. Bankruptcy Court, District of Delaware (Wilmington)