Tribune judge to reconsider parts of October plan confirmation ruling

By Caroline Salls

Pittsburgh, Dec. 29 - Two motions for reconsideration of court order on confirmation of Tribune Co.'s plan of reorganization were granted by the U.S. Bankruptcy Court for the District of Delaware on Dec. 29 and one was granted in part and denied in part.

On Oct. 31, judge Kevin J. Carey denied confirmation of two competing plans filed for Tribune's bankruptcy case.

In his reconsideration ruling, Carey granted a motion filed by Law Debenture Trust Co. of New York and Deutsche Bank Trust Co. Americas for reconsideration of the part of the confirmation opinion dealing with subordination of the company's Phones, as well as Aurelius Capital Management, LP's motion for reconsideration of the plan ruling in connection with the application of the Phones notes subordination.

In granting the Phones-related reconsideration motions, Carey amended the plan confirmation opinion to strike its subordination determination.

"A more complete reading of the Phones indenture as a whole is required," Carey said in the Dec. 29 ruling.

"Accordingly, the court will reconsider the subordination determination to determine whether the overlooked provisions of the Phones indenture alter or impact the prior decision."

Meanwhile, the judge granted the noteholder plan proponents' motion for clarification of the plan ruling and clarified that he did not make any determination regarding the amount of Phones debt in the confirmation opinion.

In addition, Carey denied the noteholder plan proponents' motions for reconsideration of two parts of the plan ruling.

First, the judge denied reconsideration of whether Tribune's leveraged buyout lenders are entitled to share in any litigation trust proceeds received from the prosecution of fraudulent conveyance claims arising from the LBO.

Also, he denied reconsideration of the proportionate judgment reduction provision in the company's bar order.

A status conference is scheduled for Jan. 11 to finalize process and scheduling issues in connection with disclosure and confirmation of Tribune's third amended joint plan of reorganization and allocation disputes.

Carey said the parties should try to reach an agreement on scheduling, with a view toward a confirmation hearing to be held in May.

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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