Junior creditors block Tribune rescue plan

They'll need to post $1.5 bil bond to appeal revamp

Tribune’s quest to emerge from bankruptcy continues elusive as junior creditors sought to block a reorganization plan that a judge approved last month.

Judge Kevin Carey of U.S. bankruptcy court in Delaware has given junior creditors until next Wednesday to come up with a $1.5 billion bond that would allow them to appeal the revamp, which is set to place the big TV and newspaper group in the hands of senior creditors. The bankruptcy process has been dragging on for nearly four years, and an appeal would further delay a resolution for up to two years.

It’s not clear whether the junior creditors, led by Aurelius Capital Management, would choose to post a bond for such a hefty amount; if they decline to post the bond, Tribune would proceed with seeking approval from regulators to transfer broadcast licenses to its new owners.

Tribune filed for bankruptcy in December 2008 after a disastrous $8 billion leveraged buyout the year before by Sam Zell. The process has cost hundreds of million of dollars so far and put the Chicago media company in limbo. CEO Eddy Hartenstein warned of its effects.

“It’s an insidious drip-by-drip, day-by-day erosion and diminution of our brand and of our place competitively in the market,” he said in testimony Friday, according to new reports.

More TV

  • Hasan Minhaj

    TV News Roundup: Hasan Minhaj Joins NBC's 'Champions' in Guest Role (EXCLUSIVE)

    Tribune’s quest to emerge from bankruptcy continues elusive as junior creditors sought to block a reorganization plan that a judge approved last month. Judge Kevin Carey of U.S. bankruptcy court in Delaware has given junior creditors until next Wednesday to come up with a $1.5 billion bond that would allow them to appeal the revamp, […]

  • Sony's Tony Vinciquerra: Disney-Fox 'Creates Opportunities'

    Sony's Tony Vinciquerra: Disney-Fox 'Creates Opportunities'

    Tribune’s quest to emerge from bankruptcy continues elusive as junior creditors sought to block a reorganization plan that a judge approved last month. Judge Kevin Carey of U.S. bankruptcy court in Delaware has given junior creditors until next Wednesday to come up with a $1.5 billion bond that would allow them to appeal the revamp, […]

  • Mayweather McGregor fight

    Floyd Mayweather-Conor McGregor Fight Is Second Biggest Pay-Per-View of All Time

    Tribune’s quest to emerge from bankruptcy continues elusive as junior creditors sought to block a reorganization plan that a judge approved last month. Judge Kevin Carey of U.S. bankruptcy court in Delaware has given junior creditors until next Wednesday to come up with a $1.5 billion bond that would allow them to appeal the revamp, […]

  • What Disney Bought in the Fox

    What Disney Bought: A Billion-Dollar Breakdown of Assets

    Tribune’s quest to emerge from bankruptcy continues elusive as junior creditors sought to block a reorganization plan that a judge approved last month. Judge Kevin Carey of U.S. bankruptcy court in Delaware has given junior creditors until next Wednesday to come up with a $1.5 billion bond that would allow them to appeal the revamp, […]

  • Actor Dustin Hoffman poses for photographers

    Dustin Hoffman Accused of Exposing Himself to a Minor, Assaulting Two Women (EXCLUSIVE)

    Tribune’s quest to emerge from bankruptcy continues elusive as junior creditors sought to block a reorganization plan that a judge approved last month. Judge Kevin Carey of U.S. bankruptcy court in Delaware has given junior creditors until next Wednesday to come up with a $1.5 billion bond that would allow them to appeal the revamp, […]

  • conde-nast-entertainment

    Paramount TV, Anonymous Content Set First-Look Deal With Condé Nast Entertainment

    Tribune’s quest to emerge from bankruptcy continues elusive as junior creditors sought to block a reorganization plan that a judge approved last month. Judge Kevin Carey of U.S. bankruptcy court in Delaware has given junior creditors until next Wednesday to come up with a $1.5 billion bond that would allow them to appeal the revamp, […]

  • Alyssa Milano

    Alyssa Milano on 'Charmed,' Brad Kern Allegations, and the Path to Reform

    Tribune’s quest to emerge from bankruptcy continues elusive as junior creditors sought to block a reorganization plan that a judge approved last month. Judge Kevin Carey of U.S. bankruptcy court in Delaware has given junior creditors until next Wednesday to come up with a $1.5 billion bond that would allow them to appeal the revamp, […]

More From Our Brands

Access exclusive content