Tribune, creditors agree on terms

The media giant and parent of the LAT will file its reorganization plan on Friday after reaching a settlement with a group of squabbling unsecured creditors and major senior lenders. A key part of the deal has Tribune's bondholders receiving $420 million, about a third of what they're owed. In return, unsecured creditors have agreed to drop claims against the lenders who financed Tribune's 2007 leveraged buyout. Not everyone has signed on, especially bondholder Aurelius Capital Management, a NY hedge fund known for disrupting large bankruptcy cases. Aurelius apparently has plans to file its own reorganization plan. Through all this back-and-forth, very little has emerged about what Tribune might look like once it emerges from bankruptcy - other than the fact that the major banks will be the new owners. (Bloomberg, Chicago Tribune)