Tribune Creditors Open Bankruptcy Court Dispute Over Buyout
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Tribune Co. creditors began a court fight today over a plan to reorganize the bankrupt newspaper publisher by shifting $1.57 billion in losses onto lenders led by JPMorgan Chase & Co.
U.S. Bankruptcy Judge Kevin J. Carey is faced with choosing between two reorganization proposals for Tribune during a two-week hearing in Wilmington, Delaware, a process one attorney involved compared to “water torture.” Tribune’s newspapers and television stations have plunged in value since a 2007 leveraged buyout and are now worth a little more than half the $13 billion the Chicago-based company owes, according to court documents.