WILMINGTON, Del. (AP) — A federal judge in Delaware is close to deciding whether Tribune Co. can emerge from Chapter 11 bankruptcy protection.
The judge indicated after a hearing Friday that he would rule on the media conglomerate's latest reorganization plan by early July.
Tribune's plan is a revision of a proposal rejected by the judge last year. It focuses on settling legal claims against lenders involved in a 2007 leveraged buyout led by billionaire Sam Zell. The transaction left Tribune saddled with unsustainable debt of almost $13 billion.
The plan would leave Tribune in the hands of an ownership group led by JPMorgan Chase, distressed debt specialist Angelo, Gordon & Co. and hedge fund Oaktree Capital Management. The plan would also allow creditors to pursue claims against shareholders who benefitted from the buyout.