Tribune: We're not filing new bankruptcy plan

Newspaper publisher Tribune Co. told its employees in an e-mail on Aug. 27 that it wouldn't be filing an expected amendment to its reorganization plan in light of talks with creditors. Company officials wouldn't elaborate.

After the examiner issued a report concluding there was some likelihood that the second phase of the leveraged buyout in December 2007 could be attacked successfully as a constructively fraudulent transfer, some creditors withdrew their support, and the company canceled a hearing that would have been held today for confirmation of the plan.

The examiner found less likelihood that the first phase of the transaction, in May 2007, could be unraveled as a fraudulent transfer.

Tribune's plan would have settled claims that the $13.7 billion leveraged buyout led by Sam Zell contained fraudulent transfers. The plan was opposed by holders of $3.6 billion in debt.

Tribune, the second-largest newspaper publisher in the U.S., listed $13 billion in debt for borrowed money and assets of $7.6 billion in the Chapter 11 reorganization begun in December 2008. It owns the Chicago Tribune, Los Angeles Times, six other newspapers and 23 television stations.

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