Tribune Co. Buys More Time in Bankruptcy Reorganization

Tribune Co., parent company of the Los Angeles Times, KTLA-TV Channel 5, and other various media outlets, is trying to buy more time to negotiate with its creditors before having to propose a reorganization plan in bankruptcy court.

The company has already filed four extensions, but thanks to a loophole in Delaware law, the company can file for an extension to freeze the exclusivity period until the next scheduled court hearing, which happens to be April 13.

Tribune has been holding off, trying to broker some sort of deal between its senior creditors and junior bondholders. The senior creditors, which include JP Morgan Chase and multiple hedge funds and distressed debt investors, feel that since the company's value has fallen far below $5 billion, their claims should be satisfied first. On the other hand, two groups of the junior bondholders, who have more than $2 billion at stake, say they were improperly subordinated to the senior lenders.

Despite filing for an extension, the company still hopes to have reached an agreement before this month's hearing.

Pacific Attorney Group offers experienced legal counsel to individuals, families, and businesses in the Los Angeles area who have fallen on hard economic times and are interested in filing for bankruptcy. Through bankruptcy, a debtor can seek the debt relief they need by eliminating their debts or reorganizing them into a repayment plan.

It's important for anyone considering filing for bankruptcy to first consult a Los Angeles bankruptcy attorney before taking any sort of action. An attorney at our office can help you determine which form of bankruptcy would best serve your particular needs, help you fill out the necessary paperwork, and provide you with experienced legal guidance throughout the bankruptcy process.

To schedule a consultation to discuss your financial matters, please contact Pacific Attorney Group today by calling (213) 236-4400!