Tribune Co. has reached an agreement with its top creditors, allowing it to file a reorganization plan with the U.S. Bankruptcy Court by Tuesday, the Tribune-owned Los Angeles Times reports. The agreement is supported by the unsecured creditors committee, which is expected to drop a litigation which could have delayed the company’s exit from Chapter 11.
A group of junior creditors, including distressed-debt investor Centerbridge Partners, will receive a 7.4% slice of Tribune, which owns 23 television stations. Senior lenders including J.P. Morgan will end up owning about 91% of the company. But sources told the newspaper that the announcement doesn’t address Wilmington Trust Co.’s claims, which acts as the agent for bondholders with $1.2 billion of Tribune’s most junior notes. Wilmington may oppose the plan, although it’s not clear if Wilmington will be able to block it.