Tribune Bankruptcy Exit Plan Gets OK

The Tribune Company won court approval to emerge from Chapter 11 bankruptcy protection, more than four years after a leveraged buyout left the media company with unsustainable debt.

U.S. Bankruptcy Judge Kevin Carey overruled outstanding objections by various creditors to the plan, which leaves Tribune in the hands of a new ownership group led by hedge fund Oaktree Capital Management, JPMorgan Chase and Angelo, Gordon & Co., a firm that invests in troubled companies. Judge Carey said that once final revisions to the plan are made, he will confirm it. Carey's approval of Tribune's reorganization plan clears the way for the company to seek approval from the Federal Communications Commission for the transfer of broadcast licenses to the new owners. The process could take six months or longer. According to court papers, the value of Tribune's broadcast businesses is estimated at $2.85 billion. The estimated value of its publishing businesses is $623 million.