Tribune comes out of bankruptcy

MUMBAI: The Tribune Company, which owns eight newspapers and 23 TV stations, has said that it has emerged from its Chapter 11 restructuring process on 31 December, which will mark the end of a four-year old bankruptcy.

The company has also appointed its new Board of Directors, effective 31 December which includes Bruce Karsh, Ken Liang, Peter Murphy, Ross Levinsohn, Craig A. Jacobson, Peter Liguori, and Eddy Hartenstein.

Tribune?s new Board of Directors will convene its first meeting in the next several weeks, at which time it will define the roles of its members, its committee structure, and designate and ratify the company?s executive officers.

Tribune chief executive officer Eddy Hartenstein will remain in his current role until that time, the company said.

The company?s plan of reorganisation was confirmed by the US Bankruptcy Court for the District of Delaware in July, and the Federal Communications Commission granted Tribune the necessary transfer applications and waivers in November.

In connection with emergence, Tribune will close on a new $1.1 billion senior secured term loan and a new $300 million asset based revolving credit facility. The term loan will be used to fund certain required payments under the plan of reorganization, and the revolving credit facility will be used to fund ongoing operations.

"Tribune will emerge from the bankruptcy process as a multi-media company with a great mix of profitable assets, strong brands in major markets and a much-improved capital structure," said Hartenstein.

"The company?s greatest asset, however, is its employees who, individually and collectively, have remained focused on serving our viewers, readers, advertisers and communities with a single-minded sense of purpose and dedication. I want to thank all our employees for their talent and effort throughout this four-year process."

In addition, Tribune?s pre-petition credit facilities and outstanding notes and debentures will be cancelled and extinguished, and its pre-petition common stock will be cancelled. Upon completion of all distributions under the plan of reorganisation, Tribune will have issued to former creditors a mix of approximately 100 million shares of new class A common stock and new class B common stock and new warrants to purchase shares of new class A or class B common stock.

"In accordance with our restructuring plan, Tribune?s subsidiary creditors and vendors will be receiving payment in full-100 per cent recovery of what they are owed," said Hartenstein. "These long-term relationships are very important to the company and we are pleased to be successfully resolving these obligations."