Tribune Co. emerges from Chapter 11 with Dec. 31 plan effective date

By Jim Witters

Wilmington, Del., Dec. 31 - Tribune Co.'s plan of reorganization became effective Dec. 31, and distributions to creditors have been initiated, according to court documents and a company press release.

On July 23, judge Kevin J. Carey confirmed the fourth amended joint plan of reorganization for Tribune Co. and its subsidiaries proposed by the debtors, the official committee of unsecured creditors, Oaktree Capital Management, LP; Angelo, Gordon & Co., LP; and JPMorgan Chase Bank, NA.

In connection with emergence, Tribune closed on a new $1.1 billion senior secured term loan and a new $300 million asset based revolving credit facility.

The term loan will be used to fund certain required payments under the plan of reorganization. The revolving credit facility will be used to fund ongoing operations.

In addition, Tribune's pre-petition credit facilities and outstanding notes and debentures were canceled and extinguished; and its pre-petition common stock was canceled.

Upon completion of all distributions under the plan of reorganization, Tribune will have issued to former creditors a mix of approximately 100 million shares of new class A common stock and new class B common stock and new warrants to purchase shares of new class A or class B common stock, according to the company's press release.

"In accordance with our restructuring plan, Tribune's subsidiary creditors and vendors are receiving payment in full - 100% recovery of what they are owed," said Eddy Hartenstein, Tribune's chief executive officer.

"These long-term relationships are very important to the company, and we are pleased to have successfully resolved these obligations."

The company also announced the makeup of its new board of directors, effective immediately. The members are Bruce Karsh, Ken Liang, Peter Murphy, Ross Levinsohn, Craig A. Jacobson, Peter Liguori, and Eddy Hartenstein.

The new board of directors will convene its first meeting in the next several weeks, at which time it will define the roles of its members, its committee structure and designate and ratify the company's executive officers. Chief executive officer Eddy Hartenstein will remain in his current role until that time, the press release said.

"Tribune emerges from the bankruptcy process as a multi-media company with a great mix of profitable assets, strong brands in major markets and a much-improved capital structure," Hartenstein said.

"The company's greatest asset, however, is its employees who, individually and collectively, have remained focused on serving our viewers, readers, advertisers and communities with a single-minded sense of purpose and dedication. I want to thank all our employees for their talent and effort throughout this four-year process."

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

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