Tribune, the media company responsible for publishing the Los Angeles Times and the Chicago Tribune, filed for bankruptcy in December 2008. Now, two of the company’s creditors have created a plan for the company to hopefully exit from bankruptcy protection.
On Friday, Tribune’s two largest creditors OakTree Capital Management L.P. and Angelo Gordon & Co. proposed a blueprint to exit bankruptcy in case mediations do not resolve disputes. Normally, companies who have filed for bankruptcy are allowed exclusive rights to determine how they will exit bankruptcy. However, because Tribune’s bankruptcy has lasted so long, creditors are now in charge of determining how ownership in the company will be distributed.
Mediations are planned to begin soon to help debt-holders settle their issues and help Tribune successfully exit bankruptcy. OakTree and Angelo Gordon decided to create the proposal, which calls for the creation of a litigation trust, in case mediations are unsuccessful.
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