Tribune Emerges From Chapter 11
CHICAGO -- Tribune Co. announced
today that it has successfully emerged from its Chapter 11 restructuring
process. The company’s plan of reorganization was confirmed by the U.S.
Bankruptcy Court for the District of Delaware in July, and the Federal Communications Commission
granted Tribune the necessary transfer applications and waivers in
November. Tribune’s plan of reorganization officially became effective
Dec. 31, 2012, and distributions to creditors have been initiated.
“Tribune emerges from the bankruptcy process as a multi-media company with a
great mix of profitable assets, strong brands in major markets and a
much-improved capital structure,” said Eddy Hartenstein, Tribune’s CEO. “The
company’s greatest asset, however, is its employees who, individually and
collectively, have remained focused on serving our viewers, readers,
advertisers and communities with a single-minded sense of purpose and
dedication. I want to thank all our employees for their talent and effort
throughout this four-year process.”
In connection with emergence, Tribune closed on a new $1.1 billion senior
secured term loan and a new $300 million asset based revolving credit facility.
The term loan will be used to fund certain required payments under the plan of
reorganization, and the revolving credit facility will be used to fund ongoing
In addition, Tribune’s pre-petition credit facilities and outstanding notes and
debentures were cancelled and extinguished, and its pre-petition common stock
was cancelled. Upon completion of all distributions under the plan of
reorganization, Tribune will have issued to former creditors a mix of
approximately 100 million shares of new class A common stock and new class B
common stock and new warrants to purchase shares of new class A or class B
common stock. Former creditors entitled to receive a distribution of
Tribune’s new common stock or new warrants are encouraged to review the
information and documents which will be posted to Tribune’s website at www.tribune.com relating to such securities,
including Tribune’s Amended and Restated Certificate of Incorporation, Amended
and Restated Bylaws, the warrant agreement setting forth the terms of the new
warrants and other information, including FAQs with respect to distributions
under the plan of reorganization.
“In accordance with our restructuring plan, Tribune’s subsidiary creditors and
vendors are receiving payment in full—100 percent recovery of what they are
owed,” Hartenstein said. “These long-term relationships are very
important to the company and we are pleased to have successfully resolved these
The company also announced its new board of directors, effective
immediately: Bruce Karsh, Ken Liang, Peter Murphy, Ross Levinsohn, Craig
A. Jacobson, Peter Liguori, and Eddy Hartenstein.
Tribune’s new board will convene its first meeting in the next several weeks,
at which time it will define the roles of its members, its committee
structure, and designate and ratify the
company’s executive officers. CEO Eddy Hartenstein will remain in his
current role until that time. Tribune owns or operates 23 television stations,
WGN America on cable, multicast network Antenna TV and Chicago’s WGN-AM,
plus several newspapers including Los Angeles Times, Chicago Tribune, The
Baltimore Sun, Sun Sentinel, Orlando Sentinel, Hartford Courant, The
Morning Call and Daily Press.