Tribune step-one lenders take action on JPMorgan loan trade refusal

By Caroline Salls

Pittsburgh, Nov. 23 - Some of Tribune Co.'s step-one credit agreement lenders have asked the U.S. Bankruptcy Court for the District of Delaware to postpone the plan of reorganization voting record date until JPMorgan Chase Bank NA closes loan trades it has refused to record, according to a Tuesday court filing.

"JPMorgan's wrongful refusal to record trades threatens harm to the step-one lenders by reducing the amount of claims that the relevant step-one lenders can vote with respect to the four competing plans of reorganization," the lenders said in the motion.

In addition, the lenders are asking the court to confirm that filing a lawsuit in the New York State Supreme Court to force JPMorgan to record the loan trades does not violate the bankruptcy court's mediation order, or, in the alternative, to order JPMorgan Chase Bank NA to record the loan trades if it concludes that it has the jurisdiction to do so.

The step-one lenders said senior loan agreement administrative agent JPMorgan has rejected existing step-one lender loan trades and refuses to record any future loan trades for the lenders, even though it is contractually required to do so.

The step-one lenders said JPMorgan is also seeking sanctions against them for filing the New York Supreme Court lawsuit.

Tribune, a Chicago-based media company, filed for bankruptcy on Dec. 8, 2008. Its Chapter 11 case number is 08-13141.

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