Judge’s ruling extends Tribune’s bankruptcy case, but does that bode well for company?
Los Angeles Times | Bloomberg Businessweek
A judge has rejected two competing reorganization plans for Tribune Co. and threatened to appoint a trustee to resolve the case if the two groups of creditors can't come to a resolution. "The two plans differed in whether they settled, or pursued lawsuits against lenders, including JPMorgan Chase & Co., that funded the company’s 2007 leveraged buyout," Businessweek reports. The plan favored by JPMorgan Chase and other senior creditors has a better chance if it's revised, says the Tribune-owned Los Angeles Times. The Times also notes that Tribune Co. is approaching 1,100 days in bankruptcy court, among the longest cases for publicly traded companies. But that may bode well for Tribune. "Generally speaking, a company that comes out of a long bankruptcy is more likely to do well than a company that comes out of a short bankruptcy," says UCLA bankruptcy expert Lynn M. LoPucki. One reason, according to the Times: "Just getting through a long reorganization shows that a company has staying power." || Earlier: Tribune bankruptcy judge disappoints as long confirmation trial ends