It looks like Tribune Co.’s long bankruptcy ordeal may finally be coming to an end. The company, which filed for bankruptcy nearly two years ago, has finally reached a settlement with its major creditors. Under the agreement, Tribune Co. bondholders will receive $420 million once the company emerges from bankruptcy.
A previous agreement, reached last spring, was upended when some of Tribune Co.’s bank lenders opposed it, saying the deal would force them to make a big payout, while the initial backers of Tribune’s leveraged buyout three years ago would not have to contribute any cash.
In a statement, Tribune Co. says it expects to file the new reorganization plan by Friday. The Los Angeles Times, however, reports that at least one small creditor — Aurelius Capital Management — is still planning to challenge this arrangement.