A federal bankruptcy judge has given Tribune Company management more time to put together a plan to emerge from Chapter 11. Also delayed is any decision on an independent examiner.
The independent examiner had been sought by pre-buyout creditors to examine whether the transaction amounted to a fraudulent conveyance. That move had been endorsed by the US Trustee, without taking a position on the issue. But that’s not going to happen, at least not right away. The judge put off any decision until an April hearing.
Meanwhile, at Thursday’s hearing US Bankruptcy Judge Kevin Carey gave Tribune Company management the exclusive right to win agreement among its various classes of creditors on a financial reorganization plan for another 30 days. Tribune’s legal team told the judge that the settlement talks are difficult, but continue to move forward.