"A group of lenders to bankrupt Tribune Co withdrew its reorganization plan for the media company, leaving creditors with three other options when they begin voting on how to end the two-year-old Chapter 11 case," Reuters reports.
According to the story, the group is called the Step One Lenders and holds about $768 million of Tribune debt.
Says the story, "The Step One Lenders said in their amended plan filed last week that their approach was faithful to the findings of the court-appointed examiner. The examiner found that a court would likely determine the second part of [Sam] Zell’s buyout was an ‘intentional fraudulent conveyance.’ "
But according to the story, "Evan Flaschen, an attorney representing the group, made up of 14 hedge funds, including GreyWolf Capital Management and billionaire George Soros’ Soros Fund Management" said today "Pursuing the plan ‘was not the best focus of our resources.’ "
The story said Tribute did not comment the group withdrawing its reorg plan.