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Tribune wins dismissal of Publishers Forest case, extension of stay
By Jim Witters
Wilmington, Del., May 24 - The Tribune Co. won dismissal of the Chapter 11 case of debtor Publishers Forest Products Co. of Washington and an extension of the stay of avoidance actions, according to documents filed May 24 with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, Tribune said Publishers is not a party to the other Tribune debtors' fourth amended plan of reorganization, has no significant assets and is not a guarantor of any of the company's debt.
In addition, Tribune said the three third-party claims filed against Publishers, including a potential environmental claim related to land formerly owned by the debtor in Washington, can be addressed in a non-bankruptcy setting that does not impact the other debtors and their reorganization.
Litigation stay
The court granted the company an extension of the stay to 90 days after the effective date of the fourth amended plan of reorganization proposed by the Tribune debtors, the official committee of unsecured creditors, Oaktree Capital Management, LP, Angelo, Gordon & Co., LP and JPMorgan Chase Bank, NA.
The avoidance action stay had been scheduled to expire on June 30.
According to court documents, Tribune filed 94 preference and fraudulent conveyance avoidance actions against third parties and entered into tolling agreements with 127 third parties to extend the statute of limitations for filing potential avoidance actions.
The company said the plan effective date will likely not occur before June 30, so it is requesting the stay extension "to maintain the status quo," pending confirmation and effectiveness of the plan.
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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