Tribune Company announced today that it has filed with the United States Bankruptcy Court for the District of Delaware, a Plan of Reorganization that would keep the company intact, sharply reduce its debt, and turn ownership over to holders of the company’s Initial and Incremental Term Loans.
The Plan, which must still be approved by Tribune creditors and the Court, incorporates the terms of two previously announced settlement agreements endorsed by the mediator and reached by its Unsecured Creditors Committee, Oaktree Capital Management, L.P., Angelo, Gordon & Co, L.P., and JPMorgan Chase Bank.
“We are pleased to be able to put before the court and our creditors the previously announced settlement of LBO claims in a plan that maximizes the value of the bankruptcy estates, preserves all stakeholders’ legitimate entitlements and enables the company to conclude its bankruptcy proceedings as soon as possible,” said Don Liebentritt, Tribune’s Chief Restructuring Officer. “In addition, we believe this plan has broad support within the senior lender class, including from an ad hoc group of lenders called the Credit Agreement Lenders, which collectively represents approximately $5 billion of Initial and Incremental term Loans—Oaktree, and Angelo, Gordon, are part of this ad hoc group.”
Documents filed with the plan contain highlights of the company’s recent and projected financial performance. The company expects operating cash flow for full year 2010 to be $617 million, approximately $123 million higher than 2009*.
Under the Plan, Tribune expects to continue its recently implemented employee retirement plan, featuring a 401(k) plan with company matching contributions and an annual discretionary profit-sharing contribution based on the achievement of certain financial goals; the company’s employee stock ownership plan (ESOP) would terminate and the shares held by the ESOP and in employee accounts would be extinguished.
* Tribune Company and its subsidiaries maintain their financial records in accordance with generally accepted accounting principles (“GAAP”); however, the information included herein is preliminary and includes some non‐GAAP financial measures.
The Company uses cash operating expenses and operating cash flow to evaluate internal performance. “Cash operating expenses” are defined as operating expenses before depreciation and amortization, write‐downs of intangible assets, stock‐based compensation, certain special items including severance, non‐operating items, and reorganization costs. “Operating cash flow” is defined as earnings before interest and dividend income, interest expense, equity income and losses, depreciation and amortization, write‐downs of intangible assets, stock‐based compensation, certain special items including severance, non‐operating items, and reorganization costs. Cash operating expenses and operating cash flow are not measures of financial performance under GAAP and should not be considered as a substitute for measures of financial performance prepared in accordance with GAAP.
This document includes forward-looking statements that are subject to risks and uncertainties relating to the future financial and business performance of Tribune Company (the “Company”). These forward-looking statements may include statements regarding the Company’s business, financial condition, results of operations, cash flows, strategies and prospects. Forward-looking statements represent estimates as of the date of this presentation only, and are not intended to give any assurance as to actual future results which may vary materially from such estimates. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause actual activities or results of the Company to differ materially from the activities and results anticipated in the forward looking statements contained here-in. The forward looking statements should not be regarded as a representation by the Company that any results will be achieved.