Tribune creditors propose revised bankruptcy plan

Tribune Company bondholders led by hedge fund Aurelius Capital Management filed a revised bankruptcy reorganization plan for the media company, hoping to overcome objections by senior creditors.

The revised plan calls for lower sums to be set aside to address litigation stemming from Tribune's $8.2 billion leveraged buyout in 2007, which was led by real estate developer Sam Zell. Some senior creditors had complained that too much of the equity in a reorganized Tribune would be tied up while the litigation, which could last for years, proceeds. Under the bondholders' revised plan, about 20 percent to 29.5 percent of Tribune's value would be held in the litigation trust, down from 50 percent to 65.4 percent in their earlier plan.