Tribune Co. Exits Bankruptcy Protection After 4 Years
On Monday, newspaper and television conglomerate Tribune Company announced that after spending the past four years in Chapter 11 bankruptcy protection, it's finally ready to come out. The company's publications include the Los Angeles Times and Chicago Tribune.
Implementing a reorganization plan approved by the U.S. Bankruptcy Court for the District of Delaware back in July, Tribune has secured a new $1.1 billion senior secured loan and a $300 million asset-based revolving credit facility to finance its operations. The company began distributions to its pre-bankruptcy creditors today -- shares of stock in the reorganized company, rather than the cash they originally loaned it.
In all, Tribune expects to issue its former lenders some 100 million shares of new Class A and Class B common stock, along with warrants to purchase additional shares.
The company's broadcasting group owns or operates 23 television stations, WGN America on national cable, the national multicast network Antenna TV, and Chicago's WGN-AM. In publishing, Tribune's leading daily newspapers include the Los Angeles Times, Chicago Tribune, The Baltimore Sun, Sun Sentinel (South Florida), Orlando Sentinel, Hartford Courant, The Morning Call and Daily Press.