Tribune Noteholders Attack Lender Settlement

Law360, New York (March 8, 2011, 8:48 PM EST) -- Noteholders vying to reorganize Tribune Co. on their terms began an assault Tuesday on the key settlement with secured lenders in the media giant’s proposed bankruptcy plan, claiming they were shut out from crucial negotiations.

Attorneys for the noteholders, led by Aurelius Capital Management LP, grilled Tribune witnesses about the negotiations that led to the settlement as the evidentiary phase of Tribune’s Chapter 11 plan confirmation hearing began in the U.S. Bankruptcy Court for the District of Delaware.

The disputed settlement protects lenders involved in billionaire...
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