Noteholders not backing down in opposing Trib plan

WILMINGTON, Del. — Senior noteholders are not backing off their criticism of Tribune Co.'s reorganization plan, but a Delaware bankruptcy judge has nixed some of their strong language.

The judge said Monday that a letter from the chairman of a hedge fund representing the noteholders goes too far and will not be included in documents to be sent to creditors explaining Tribune's plan and three alternative plans submitted by opponents.

Among other things, Aurelius Capital Management chairman Mark Brodsky says Tribune's plan is the result of high-handed tactics, abuse of power and conflicts of interest. He also says senior lenders who funded Tribune's leveraged buyout in 2007 have held Tribune hostage in order to get a plan releasing them from legal claims involving the buyout.