UPDATE 2-Tribune gets creditor agreement on bankruptcy exit

* Tribune reaches deal with creditors to exit bankruptcy

* Says deal settles claims stemming from 2007 buyout

* Deal lacks support of junior bondholders
(Adds details on opposition to the deal from junior
bondholders, paragraphs 6-9)

By Emily Chasan and Robert MacMillan

NEW YORK, April 8 (BestGrowthStock) – U.S. newspaper publisher
Tribune Co said on Thursday it has agreed with creditors on a
plan that would help it exit bankruptcy protection later this
year.

The publisher of the Chicago Tribune and Los Angeles Times,
which filed for bankruptcy protection in December 2008, said it
reached a deal with major creditors and lenders including
JPMorgan Chase & Co (JPM.N: ), Angelo Gordon, Centerbridge
Partners and its Official Committee of Unsecured Creditors.

“Under the plan, the company would emerge from bankruptcy,
significantly deleveraged, with its business units intact and
with adequate liquidity for operating and capital needs,”
Tribune said in a statement.

The company’s senior credit facility lenders would control
91 percent of the stock of the reorganized company and senior
noteholders would receive a combination of cash, debt and stock
to repay their claims.

The agreement also settles all potential claims stemming
from the $8.2 billion Tribune leveraged buyout led by real
estate developer Sam Zell in 2007, Tribune said in a statement.

The settlement does not have the support of a group of
junior bondholders, according to their attorney Robert Stark of
the law firm Brown Rudnick.

Represented by Wilmington Trust Co, the holders of $1.2
billion in Tribune debt have warned for months that the company
would strike a deal like Thursday’s that would release Zell and
lenders from any liability for the company’s collapse and the
losses suffered by bond investors.

They have complained of being cut out of the negotiating
process and have criticized the makeup of the creditors’
committee, which includes bank lenders which are usually
excluded.

“Seven of the nine members of the official committee are
economically motivated to reach a quick and rather easy plan
settlement with a Zell-control management,” the bondholders
wrote in a court filing last year.

Tribune, which sold its stake in the Chicago Cubs baseball
team and Wrigley Field earlier in the bankruptcy case, said it
expects it will be able to file a reorganization plan before a
court hearing next Tuesday. The agreement and settlement are
subject to court approval.

The case is In re: Tribune Co, U.S. Bankruptcy Court,
District of Delaware, No. 08-13141.

Investment

(Reporting by Emily Chasan and Robert MacMillan; additional
reporting by Jonathan Stempel and Tom Hals; Editing by Phil
Berlowitz and Muralikumar Anantharaman)

UPDATE 2-Tribune gets creditor agreement on bankruptcy exit