Court OKs Tribune filing

A Delaware bankruptcy court approved interim bankruptcy financing so the company can pay its employees and vendors. Tribune will get a $50 million letter of credit from lenders led by Barclays Bank Plc, and the bank will increase the size of an existing loan to $300 million from $225 million. From Reuters:

The company's lawyer said during the hearing that he believes the company will be able to reorganize because of a favorable debt structure. Tribune's debt at its operating companies is all unsecured, he said, which means the debt is all equal in terms of which will be repaid first. That eliminates one of the difficulties of restructuring negotiations, when committees representing different tiers of creditors fight each other to be repaid first. "That is what makes this group of companies so remarkable and gives us the benefit of restructuring these companies in the most intelligent way possible," James Conlan, a Tribune attorney with the law firm of Sidley Austin LLP, told Judge Kevin Carey in Delaware bankruptcy court.



More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent stories:
Letter from Down Under: Welcome to the Homogenocene
One last Florida photo
Signs of Saturday: No refund
'I Am Woman,' hear them roar
Bobcat crossing
Previous story: Mortgages not worth saving

Next story: Zell's game plan

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook