The Chapter 11 proceeding for Tribune Company drags on, but now creditors will have one less reorganization plan to pick from. One group of senior loan holders has withdrawn their plan.
The reorganization plan proposed by a group of holders of “Step One Senior Loan Claims” had filed one of four competing plans to be put to a vote of the various creditors, if and when US Bankruptcy Judge Kevin Carey decides they are acceptable. The Step One creditors, mostly located in Southern California, have now withdrawn their plan, but are not endorsing any of the three remaining plans.
One of the three remaining reorg plans is the settlement reached by Tribune Company management with its Official Committee of Unsecured Creditors, Oaktree Capital Management, Angelo, Gordon & Co, and JPMorgan Chase Bank. Dissident groups of lower-ranking creditors filed the other two plans.
It is not known when Judge Carey may decide which plan(s) to send to creditors for a vote.