The Tribune Co., owner of the Chicago Tribune and Los Angeles Times newspapers, has filed a third reorganization plan with the U.S. Bankruptcy Court in Delaware as the media company attempts to address concerns raised by the court last month.
The plan has the backing of its co-proponents, the Unsecured Creditors Committee, Oaktree Capital Management LP, Angelo, Gordon & Co. LP, and JPMorgan Chase & Co., the company said Friday.
Last month, the court rejected Tribune's plan to end its three-year stay in bankruptcy as well as a competing plan from the company's noteholders, but said Tribune's plan had stronger creditor backing and suggested that it might offer the company a way out of bankruptcy.
The amended reorganization plan continues to include a proposed settlement of about $500 million payable to noteholders.
It also includes certain modifications based on court rulings and a proposal that would allow the court to resolve potential disputes between creditors over amounts to be paid to various parties without impeding the company's efforts to emerge from bankruptcy.
The media company is asking for a confirmation hearing next February.
Tribune, also the owner of more than 20 television stations, filed for bankruptcy protection in 2008, one year after financier Sam Zell led a $13 billion leveraged buyout of the company.
The bankruptcy wiped out the value of the company's notes, which had a face value of more than $1 billion.
(Reporting by Julie Steenhuysen in Chicago, Editing by Sandra Maler)