Tribune reorganization backed by senior loan claimants

Tribune Co.'s proposed bankruptcy reorganization plan was approved by holders of senior- and bridge-loan claims while being rejected by senior noteholders, the newspaper publisher said in an e-mailed statement.

Tribune's creditors were asked to choose between a company proposal that was backed by the senior lenders who financed the buyout in 2007 and one sponsored by lower-ranking creditors. Those creditors include noteholders, led by Aurelius Capital Management, who saw their debt lose its place in the repayment order to the senior lenders under the company plan.

“These results are as we expected and we are pleased that they confirm broad support for the restructuring plan supported by the company and its co-proponents,” Don Liebentritt, Tribune's chief restructuring officer, said in the statement.

U.S. Bankruptcy Judge Kevin Carey in Wilmington, Delaware, will take the votes into consideration when he decides which of the plans to approve. Under both plans, Tribune would exit bankruptcy intact. Each plan would divide ownership and handle lawsuits related to its 2007 buyout differently.

The senior lenders and lower-ranking creditors have been preparing for a court battle set to begin next month over the two plans.

Mark Brodsky, chairman of New York-based Aurelius Capital, didn't immediately reply to an e-mailed request for comment on the voting results that were reported by Chicago-based Tribune.

“We will continue to prepare for the confirmation hearing set to begin on March 7,” Liebentritt said. The company's print properties include the Chicago Tribune and Los Angeles Times. It operates 23 television stations, including WGN along with its sister WGN-AM radio station in Chicago.

The media company filed for bankruptcy in 2008, one year after a buyout took it private using borrowed money. Tribune owes creditors about $13 billion and is valued at about $6.75 billion, according to court records.