The votes are in and Tribune Company reports that the overwhelming majority of the company’s creditors favor the Chapter 11 reorganization plan backed by company management and a group of key creditors. Still, the bankruptcy court has to rule on which of two plans to accept at a hearing on March 7th.
The favored plan was the one that Tribune management agreed to with its Official Committee of Unsecured Creditors, Oaktree Capital Management, Angelo, Gordon & Co, and JPMorgan Chase Bank. A company statement late Friday said it was overwhelmingly supported in the voting by the holders of the Senior Loan Claims and the Bridge Loan Claims, as well as most classes of trade and other general unsecured claimants.
The competing reorg plan, filed by activist investment firm Aurelius Capital Management, was favored by the holders of the Senior Noteholder Claims and the PHONES Notes Claims. Aurelius is a major holder of the Senior Noteholder Claims – the Tribune notes already in existence before the ill-fated LBO.
“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. We continue to prepare for the confirmation hearing set to begin on March 7th and remain confident that the court will confirm our plan over the Aurelius/Noteholder plan,” said Don Liebentritt, Tribune’s Chief Restructuring Officer.