Judge weighs Tribune Co. bankruptcy plan

Associated Press + More

By RANDALL CHASE, Associated Press

WILMINGTON, Del. (AP) — A federal judge in Delaware is close to deciding whether Tribune Co. can emerge from Chapter 11 bankruptcy protection.

The judge indicated after a hearing Friday that he would rule on the media conglomerate's latest reorganization plan by early July.

Tribune's plan is a revision of a proposal rejected by the judge last year. It focuses on settling legal claims against lenders involved in a 2007 leveraged buyout led by billionaire Sam Zell. The transaction left Tribune saddled with unsustainable debt of almost $13 billion.

The plan would leave Tribune in the hands of an ownership group led by JPMorgan Chase, distressed debt specialist Angelo, Gordon & Co. and hedge fund Oaktree Capital Management. The plan would also allow creditors to pursue claims against shareholders who benefitted from the buyout.

Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.