Company Charts Path to Emerge From Chapter 11 with Sufficient Liquidity and the Ability to Expand Its Business
Tribune Company today filed with the United States Bankruptcy Court for the District of Delaware, a Plan of Reorganization (“Plan”) that would keep the company intact, sharply reduce its debt, and provide it with sufficient liquidity to expand its business in the future.
Tribune filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code in December 2008, and has continued operating its newspapers, broadcasting assets and interactive properties without interruption since that time. The Plan, which must still be approved by Tribune creditors and the Court, is expected to enable the company to emerge from bankruptcy later this year.
“Tribune’s leadership team and employees have done an outstanding job of stabilizing and refocusing the company’s business,” said Sam Zell, chairman. “Today’s filing represents a significant and positive step forward for the business.”
Tribune’s chief executive officer, Randy Michaels, said, “We continue to transform Tribune into an industry-leading media company, improving our competitive position. This Plan better positions us to continue serving our users, readers, viewers, listeners and advertisers across our media platforms and gives us an opportunity to expand our business upon emergence from a solid financial base.”
Tribune expects to continue its recently implemented employee retirement plan, featuring a 401(k) with a company match and a discretionary profit-sharing allocation. Under the Plan, the company’s employee stock ownership plan would terminate and the shares held by the ESOP and in employee accounts would be extinguished.
“We’re looking forward to emerging from Chapter 11 and building on the momentum we’ve generated,” said Michaels.