Judge to stay Tribune plan pending $1.5 billion creditors bond

Tribune Company creditors won a stay of last month's order confirming the company's plan to exit bankruptcy, so long as they pay a $1.5 billion bond.

U.S. Bankruptcy Judge Kevin Carey in Wilmington, Delaware gave the creditors until Aug. 29 to post the bond in order to keep the plan on hold while they pursue an appeal. The judge said it would be hard to "unscramble the egg" if he let the plan become effective before the appeal. Creditors including Aurelius Capital Management LP had appealed Carey's July 23 decision signing off on the plan. Auerlius, which has been leading the opposition to the plan, has argued it and a related settlement would force bondholders to accept only $369 million for $2 billion to $2.3 billion in legitimate claims. Aurelius said the payout is "far below the lowest rung in the range of reasonableness."