Latest on Tribune bankruptcy

Well, there is no latest -- just more of the same old slog. It's possible that the case could be resolved soon, but that will depend on a report from bankruptcy-court examiner Kenneth Klee (he's a partner of the L.A. law firm of Klee, Tuchin, Bogdanoff & Stern). Here's the deal: Investors holding some of the largest amounts of Tribune's bank debt support the company's settlement and restructuring plan. But a group of dissident lenders, led by L.A.-based Oaktree Capital Management, claim that they're getting shafted in favor of the bondholders - and that former Tribune CEO Sam Zell is contributing zilch. From the WSJ:

The company's financial performance has continued to slip. Operating cash flow fell 37% to $494 million in 2009, according to court filings. Tribune's trip through bankruptcy has left employees, advertisers and vendors in limbo. Mr. Zell himself stepped down as chief executive and has refocused on real-estate deals, leaving his ill-fated media venture behind. A Tribune representative declined to comment on the bankruptcy proceedings.

About that report from the bankruptcy-court examiner: It centers on the circumstances surrounding Tribune's buyout, and whether there's any merit to the accusations of "fraudulent conveyance" (another way of saying that the deal left Tribune insolvent from the start). Depending on what the report says, all kinds of scenarios are possible. Don't even try to figure this thing out, folks - it's headache-inducing. By the way, Klee asked the court today for a 15-day extension for filing his report.