Aurelius, others appeal judge's confirmation of Tribune bankruptcy plan

Junior bondholders in the Tribune Company's bankruptcy appealed the confirmation decision in the case and asked the judge to stay consummation of a restructuring plan that would hand ownership of the Chicago-based media company to its senior creditors.

In one appeal, Aurelius Capital Management, the largest junior creditor in the Tribune bankruptcy, challenged as unreasonable the settlement at the heart of the restructuring plan confirmed by U.S. Bankruptcy Judge Kevin Carey. In a separate appeal, two indenture trustees for the junior bonds said Carey's decision unfairly discriminated against the bondholders by allowing a group of retirees and other creditors share in that settlement despite a technical subordination issue. Both appeals were accompanied by requests that Judge Carey stay the proceedings for as long as it takes a federal district court to hear the appeals. Before the restructuring plan can go into effect, Tribune must win approval from the Federal Communications Commission to transfer its television and radio broadcast licenses to the new owners. The company also has to arrange $1.1 billion in new debt financing and a credit line.