WILMINGTON, Del. — A Delaware bankruptcy judge has resumed a hearing to determine whether he should approve Tribune Co.’s proposed reorganization plan.
Tribune owns the Chicago Tribune, Los Angeles Times, other newspapers and several radio and TV stations. It sought bankruptcy protection after a 2007 leveraged buyout engineered by billionaire developer Sam Zell saddled the company with unsustainable debt.
Tribune’s plan would leave the company in the hands of JPMorgan Chase and other holders of loans that financed the buyout, and would shield the lenders from lawsuits. A competing plan by a group of noteholders would provide a smaller upfront recovery for creditors in order to fund lawsuits over the buyout.
Both sides revised their plans before Tuesday’s hearing after the judge indicated last month that he might not approve either proposal.