It’s official – multimedia Tribune Company is reorganized, out of Chapter 11 protection and getting set to begin distributions to creditors. It is also expected to bring in Pete Ligouri as chief exec and begin to hunt for buyers for its newspaper division.
“Tribune emerges from the bankruptcy process as a multi-media company with a great mix of profitable assets, strong brands in major markets and a much-improved capital structure,” said Eddy Hartenstein , Tribune’s chief executive officer. “The company’s greatest asset, however, is its employees who, individually and collectively, have remained focused on serving our viewers, readers, advertisers and communities with a single-minded sense of purpose and dedication. I want to thank all our employees for their talent and effort throughout this four-year process.”
In addition to completing the reorg, the company closed on a new $1.1B senior secured term loan as well as an asset-based $300M revolver.
“In accordance with our restructuring plan, Tribune’s subsidiary creditors and vendors are receiving payment in full—100% recovery of what they are owed,” said Hartenstein. “These long-term relationships are very important to the company and we are pleased to have successfully resolved these obligations.”
The company’s new Board of Directors was also announced. It includes Bruce Karsh, Ken Liang, Peter Murphy, Ross Levinsohn, Craig A. Jacobson, Peter Liguori, and Eddy Hartenstein. It will meet in the coming weeks to define responsibilities and name an executive team. Hartenstein will remain in charge until then.
According to numerous reports, Ligouri will be the CEO, and the company will begin to focus on operating its broadcast assets and spinning off its print assets.