Oct 12, 2010

Tribune might soon emerge from bankruptcy

Bankruptcy proceeding rarely lend themselves to gripping narrative; and so it goes with the Tribune Co. bankruptcy case, as the media conglomerate slouches toward the exit door with senior and unsecured creditors, but not junior creditor groups, in tow. From the LA Times:
Tribune Co. and several of its most important creditor groups announced a broad new settlement Tuesday that brings the company closer to resolving its nearly 2-year-old bankruptcy case.


Still absent from the settlement, however, are several key junior creditor groups, including major bondholder Aurelius Capital Management, a litigious New York hedge fund known for disrupting large bankruptcy cases. Sources close to Aurelius have said the fund plans to file its own plan by the court-imposed Oct. 15 deadline.
So we'll have a clearer picture by late Friday as to how this drama is going to end.

1 comment:

Anonymous said...

Aurelius lives to gum up the works and cut itself a better deal than anyone else. They will drag this out so that LAT & Co. will be stuck with the current crew for at least a few dozen more weekly Lee Abrams memos.