Tribune Creditors Feud Over Ch. 11 Plan Payouts

Law360, Wilmington (March 6, 2012, 10:15 PM EST) -- Tribune Co.’s junior creditors sparred in Delaware bankruptcy court Tuesday over how recoveries under the media giant’s reorganization plan and proceeds from associated lawsuits should be split.

In October, U.S. Bankruptcy Judge Kevin J. Carey had rejected Tribune’s previous Chapter 11 plan, but left open questions about the effect of certain subordination agreements on the relative priority of junior noteholders and other creditors at the back of the line to be repaid in the bankruptcy.

Over a two-day hearing that ended Tuesday, those creditors jockeyed for...
To view the full article, register now.