Oh no - this could go on longer than the Dodger bankruptcy. In turning down Tribune Co.'s plan to emerge from Chapter 11 - as well a rival proposal from Tribune creditors - Judge Kevin Carey said that the case, now nearing the three-year mark, needed to end quickly. He said he would appoint a trustee if necessary. (AP)
The biggest point of disagreement between the two plans centered on whether and how to pursue litigation against former Tribune executives, directors and shareholders over the 2007 LBO. The company's plan proposed narrowly limiting the scope of future litigation and promising the dissident creditors as much as $714 million, depending partly on the future value of the company, to drop most of their claims. But the Aurelius camp wanted to throw a broad net at litigation targets, contending it could win more money with a full assault.
A hearing is set for Nov. 22.
From Chicago Tribune:
Even as he rejected both plans, however, Carey said the one proposed by Tribune Co. and a group of senior creditors, including Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase had a better chance of confirmation if it was altered to meet his objections.