Tribune asks court to extend avoidance action stay period to Dec. 30

By Caroline Salls

Pittsburgh, June 10 - Tribune Co. is asking the U.S. Bankruptcy Court for the District of Delaware to extend the termination date of a stay of avoidance actions filed by the company to Dec. 30, 2011 from June 15, according to a Friday court filing.

As previously reported, the stay was originally granted on Dec. 3, 2010 to "conserve estate resources and preserve the status quo pending the outcome of the proceedings relating to the confirmation of the two competing plans of reorganization.

Tribune said it filed 94 preference and fraudulent conveyance avoidance actions against third parties and entered into tolling agreements with 127 third parties to extend the statute of limitations in order to initiate potential avoidance actions.

If its plan is ultimately confirmed, Tribune said many of the claims that are subject to avoidance actions may be eliminated, reduced or modified.

According to the motion, closing plan arguments are scheduled for June 27, and the company is not sure whether a plan would be confirmed by June 30.

Tribune said the requested extension would also give it time to satisfy the conditions required for the plan to take effect, including Federal Communications Commission approval.

A hearing is scheduled for June 28.

As previously reported, Tribune's official committee of unsecured creditors has also asked the court to extend a termination event included in orders allowing the creditor group to prosecute lawsuits on behalf of the company to Aug. 15 from June 15.

A hearing on the committee's motion is scheduled for June 13.

Tribune, a Chicago-based media company, filed for bankruptcy on Dec. 8, 2008. Its Chapter 11 case number is 08-13141.

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