The second-largest newspaper publisher in America, Tribune Co., filed for bankruptcy in December 2008. It was the biggest bankruptcy ever in the history of the American media industry. The company has been in the process of emerging from a Chapter 11 bankruptcy protection and was granted approval of a reorganization plan that would enable this emergence. However, some creditors have opposed the settlement of legal claims stemming from the company’s 2007 buyout and the way some bondholders are treated in the reorganization plan.
The creditors have demanded a halt to the planned emergence while they appeal. The judge of the case granted the halt, but with the condition that the creditors pay a $1.5 billion bond first. The creditors have refused to post the bond and have unsuccessfully attempted to modify the requirement.
According to the Chicago Tribune, the 4-year-old bankruptcy case has cost more than $400 million for Tribune Co. and could cost hundreds of millions more if the reorganization plan won’t happen. Before the company can emerge from bankruptcy, it must also get the approval of Federal Communications Commission to transfer its television and radio broadcast licenses to the investment groups that now operate the company. Furthermore, Tribune Co. “has to arrange $1.1 billion in new debt financing and a credit line.”
This case is a very clear example of the complexities associated with bankruptcies. They always involve a certain amount of legal processes that are better handled by experts. Your bankruptcy does not have to involve multi-million dollar companies or billion dollar bonds to be a serious matter. If you are considering filing for bankruptcy, you will need the help of a skilled Northern Illinois bankruptcy attorney. Contact our experienced lawyers in northern Illinois today and ensure you are prepared to defend your case.