Tribune: court approves a number of disclosure statements; plan hearing scheduled for March 7

By Lisa Kerner

Charlotte, N.C., Dec. 10 - Disclosure statements for three competing reorganization plans and one general disclosure statement for Tribune Co. were approved, according to filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing to confirm a plan of reorganization is set for March 7, the filing said.

The court determined that the specific disclosure statements filed by the parties listed below contain adequate information under the Bankruptcy Code:

• The debtors, the official committee of unsecured creditors, Oaktree Capital Management LP, Angelo, Gordon & Co., LP and JPMorgan Chase Bank, NA.

• Aurelius Capital Management, LP on behalf of its managed entities;

• Tribune's step-one senior lenders; and

• Tribune and its bridge lenders King Street Acquisition Co., LLC, King Street Capital, LP and Marathon Assets Management, LP.

As previously reported, Aurelius said its plan would allow Tribune to emerge from bankruptcy promptly, while the plan proposed by the company and LBO lenders "would hold Tribune hostage in bankruptcy" unless the court approves an LBO lender settlement over the objection of the "true economic stakeholders," the pre-LBO bondholders.

King Street and Marathon, in their disclosure statement, said their bridge plan provides the opportunity for a truly consensual settlement of the LBO-related causes of action against the LBO lenders.

The step-one lenders said previously they believe their plan "provides the highest and fairest treatment to holders of step-one senior loan claims without delaying confirmation or sacrificing the recoveries of holders of step-one senior loan claims."

On Oct. 22 Tribune filed a plan under which ownership of the company would be turned over to the holders of Tribune's initial and incremental term loans.

Tribune's plan also incorporates the terms of two previously announced settlement agreements reached by Tribune's unsecured creditors committee, Oaktree Capital Management LP, Angelo, Gordon & Co. and JPMorgan Chase Bank.

The company's plan has two primary components. First, the plan provides for settlements of LBO-related causes of action held by Tribune's estates against current and former senior lenders, the senior loan agent, the senior loan arrangers, participating current and former bridge lenders and bridge loan arrangers and the step-one selling stockholders.

Secondly, the plan calls for the preservation of the estate's remaining LBO-related causes of action for the benefit of the company's creditors and the assignment of those causes of action to the litigation trust and the creditors' trust.

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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