Tribune seeks to extend avoidance action stay termination to June 30

By Caroline Salls

Pittsburgh, Dec. 16 - Tribune Co. requested court approval to extend the termination date of a stay of avoidance actions filed by the company to June 30, 2012 from Dec. 30, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, the stay was originally granted on Dec. 3, 2010 to "conserve estate resources and preserve the status quo pending the outcome of the proceedings relating to the confirmation of the two competing plans of reorganization."

Tribune said it filed 94 preference and fraudulent conveyance avoidance actions against third parties and entered into tolling agreements with 127 third parties to extend the statute of limitations in order to initiate potential avoidance actions.

If its plan is ultimately confirmed, Tribune said many of the claims that are subject to avoidance actions may be eliminated, reduced or modified.

A hearing is scheduled for Jan. 11.

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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