The owner of the Los Angeles Times and Chicago Tribune newspapers, Tribune Co (TRBCQ.PK), has filed a third reorganization plan with the U.S. Bankruptcy Court in Delaware.
The company said the plan has the backing of its co-proponents, the Unsecured Creditors Committee, Oaktree Capital Management, L.P., Angelo, Gordon & Co, L.P., and JP Morgan Chase Bank.
Last month, the court rejected Tribune’s plan to end its three-year stay in bankruptcy as well as a competing plan from the company’s noteholders, but said Tribune’s plan had a stronger creditor backing and suggested that it might offer the company a way out of bankruptcy.
The amended reorganization plan continues to include a proposed settlement of around $500 million payable to noteholders.
It also includes certain modifications based on court rulings and a proposal that would allow the court to resolve potential disputes between creditors over amounts to be paid to various parties without impeding the company’s efforts to emerge from bankruptcy.
The bankruptcy wiped out the value of the company’s notes that had a face value of more than $1 billion.