Hedge Fund Group Scuttles Tribune Ch. 11 Plan

Law360, New York (December 15, 2010, 4:31 PM EST) -- A group of hedge funds known as the Step One lenders has withdrawn its proposed reorganization plan in The Tribune Co.’s bankruptcy, leaving creditors with three plans to choose from in a voting process that is expected to begin next week.

The Step One group filed a notice of the plan’s withdrawal late Tuesday in the U.S. Bankruptcy Court for the District of Delaware.

Evan Flaschen of Bracewell & Giuliani LLP, an attorney for Step One lenders, said at a hearing on Wednesday that the decision...
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