Tribune committee eyes extension of prosecution order termination date

By Caroline Salls

Pittsburgh, May 27 - Tribune Co.'s official committee of unsecured creditors requested court approval to extend a termination event included in court orders allowing the creditor group to prosecute lawsuits on behalf of the company to Aug. 15 from June 15, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The committee said extending the termination date to Aug. 15 will allow the parties to continue to take advantage of the prosecution orders while the competing reorganization plans filed in Tribune's case are litigated, a ruling is made or a settlement is reached.

As previously reported, the committee has been granted standing to prosecute and settle claims arising out of Tribune's 2007 leveraged buyout and claims related to avoidable transfers.

However, any lawsuits filed by the committee are "broadly stayed" and cannot be settled without the consent of the company and committee until a termination event occurs.

A hearing is scheduled for June 13.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.