RPT-Chicago’s Tribune Co files reorganization plan

* Tribune files reorganization plan

* Proposal requires approval of the court and creditors

* Control would be turned over to senior creditors
(Repeats with more detailed headline)

NEW YORK, Oct 23 (BestGrowthStock) – Tribune Co (TRBCQ.PK: ) filed a
reorganization plan late on Friday that will turn over control
of the bankrupt newspaper publisher to its leading creditors
including JPMorgan Chase & Co (JPM.N: ), Angelo Gordon & Co and
Oaktree Capital Management [OAKCP.UL].

The plan signals an important step toward the recovery of
the media company — which owns the Los Angeles Times and the
Chicago Tribune — from what Sam Zell, the real estate
developer and architect of the 2007 leveraged buyout, called
“the deal from hell.”

Zell took the 163-year-old publisher and owner of 23
television stations private in a 2007 deal that loaded the
company with more than $8 billion in debt. It filed for
bankruptcy a year later, buckling under the weight of a heavy
debt load and a severe decline in advertising revenue.

The reorganization plan was made public just hours after
chief executive Randy Michaels, under fire from reports that he
tolerated a sexist and hostile workplace, resigned.

Michaels was replaced by a committee of Don Liebentritt,
the company’s chief restructuring officer; Nils Larsen, its
chief investment officer; Tony Hunter, the CEO of Chicago
Tribune Co; and Eddy Hartenstein, the CEO of Los Angeles Times
Communications LLC.

Larsen was also named chairman of Tribune Broadcasting.

However, the new management is unlikely to serve more than
a few months.

Creditors have been in contact with media executives
including Peter Chernin, former chief operating officer of News
Corp (NWSA.O: ), to become chairman, people familiar with the
discussions said.

The new agreement combines two previously announced
settlement offers from leading lenders and a group of unsecured
creditors.

Some bondholders would receive $420 million, or 32.73 cents
to the dollar, and interest in a litigation trust.

The plan requires the approval of the court and creditors.

The company expects operating cash flow for the full year
2010 to be $617 million, or $123 million higher than 2009.

U.S. Bankruptcy Judge Kevin Carey ruled on Friday to let a
committee of unsecured creditors sue Zell, other executives and
advisers.

Bondholders opposing the reorganization plan are girding
for a fight.

Daniel Golden, an attorney representing hedge fund Aurelius
Capital Management LP, said on Friday they planned to file a
rival plan next week. Aurelius is among the largest holders
with $1.3 billion of senior Tribune bonds.
(Reporting by Kenneth Li; editing by Jim Marshall)

RPT-Chicago’s Tribune Co files reorganization plan