Tribune tweaks lender plan distribution ahead of statement hearing

By Caroline Salls

Pittsburgh, May 19 - Tribune Co. filed an amended plan of reorganization and related disclosure statement Wednesday with the U.S. Bankruptcy Court for the District of Delaware that changes the proposed distribution to holders of allowed loan claims.

Under the amended plan, holders of senior loan claims and bridge loan claims will recover 0.44% through a share of a loan claims allocation, a loan claims stock allocation and a loan claims cash allocation.

The specific bridge loan claims class is new to the amended plan.

Under the previously plan, loan claimants were scheduled to receive a share of 8.8% of a new senior secured term loan, minus the amount of the term loan to be distributed to senior noteholders, the portion of an other parent claims allocation that is the new term loan and the amount of cash to be distributed to holders of convenience class claims.

These creditors were also slated to receive 8.8% of new common stock, minus the stock distribution to noteholders and holders of other parent claims.

As previously reported, the plan is based on a settlement that would resolve all potential claims arising from the company's 2007 going-private transactions and is supported by major creditors J.P. Morgan and Angelo Gordon, Tribune's pre-bankruptcy senior credit facility and senior noteholder Centerbridge Partners.

Creditor treatment

Specific creditor treatment will include:

• Holders of allowed loan claims will receive a share of a loan claims allocation, a loan claims stock allocation and a loan claims cash allocation;

• Holders of senior noteholder claims will receive a share of 7.4% of the new term loan, 7.4% of distributable cash and 7.4% of the new common stock;

• Holders of other parent claims will recover 35.18% in distributable cash;

• Holders of loan guaranty claims will receive 91.2% of the new term loan, plus the other parent claims portion of the term loan, as well as 91.2% of distributable cash, minus the amount of cash to be distributed to holders of general unsecured claims and to other parent claims in excess of the portion of other parent claims that is distributable cash. These creditors will also receive 91.2% of the new common stock, plus the portion of the other parent claims allocation that is distributable cash;

• Holders of general unsecured claims against relevant filed subsidiary debtors will be paid in full with distributable cash, provided, however, that if the company decides that the total sum of these claims will exceed $150 million and a senior lender settlement committee does not elect to provide additional consideration, these general unsecured creditors will receive a share of $150 million in cash;

• Holders of EGI-TRB LLC notes claims, Phones notes claims, securities litigation claims and Tribune interests will receive no distribution; and

• Interests in the filed subsidiary debtors will be reinstated.

The disclosure statement hearing is scheduled for May 20.

Tribune, a Chicago-based media company, filed for bankruptcy on Dec. 8, 2008. Its Chapter 11 case number is 08-13141.

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