Tribune Cleared to Seek Reorganization Support

WILMINGTON, Del. (CN) - The Tribune Co. can solicit support for its Chapter 11 reorganization plan after a federal bankruptcy judge approved the company's amended disclosure statement Monday.

The modifications were prompted by a creditor group known as the bridge loan lenders, who wanted more lucid language in the disclosure statement concerning their options.

As structured by Tribune, the bridge lenders will recover $74 million of the original $1.6 billion loaned, or 4.6 percent.

With Wells Fargo as their representative, the bridge loan lenders also sought more disclosure by Tribune concerning top executive pay.

Last week Tribune asked Judge Kevin Carey for an additional $43 million in executive bonuses for 2010, bringing the total requested during the bankruptcy proceedings to $115 million.

The Baltimore-Washington Newspaper Guild previously objected to a $15 million bonus revealed in Tribune's reorganization plan.

Now creditors must vote on whether to back the plan by July 30. After the votes are tallied, a confirmation hearing is scheduled for Aug. 16.

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