Judge Gives Tribune Bankruptcy Plan Court Approval

A bankruptcy court judge approved the reorganization plan proposed by the Chicago Tribune helping the company exit proceedings that have dragged on for 3 ½ years.

The Tribune will transfer ownership to a Los Angeles-based investment firm Oaktree Capital Management.

The judge’s decision also allows the Federal Communications Commission to move in the Tribune’s application to transfer their television and radio broadcast rights to new owners.

The reorganization plan also allowed the Tribune to obtain $1.1 billion in debt financing along with a line of credit for $300 million. The company will be restructuring their administrative and financial matters which will need to be settled before they can emerge from bankruptcy later this year.

The Tribune owns a number of media outlets which include the Chicago Tribune, the Los Angeles Times, and WGN television network. They filed for bankruptcy in 2008 with $13 billion in debt and only $7.6 million on assets.

The Tribune like so many other businesses has been struggling in the sluggish economy. Though it may not be their favored choice, a bankruptcy attorney can outline the various debt-relief structures and guided them in making the right decision.

Bankruptcy is a legal action which informs creditors that the debtor is no longer able to pay their bills. It gives the filer an opportunity to reduce or even eliminate some of their liabilities. Declaring bankruptcy is a tough decision and should not be made without seeking out the expertise of a bankruptcy lawyer.

If you are a business owner or an individual, you have options to stop harassing collection activities and get back on sound financial footing. Let a bankruptcy attorney explain the process and show you how to get out of debt.