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29 Sep 2010

Hedge Funds To Get Tribune Out Of Bankruptcy

HedgeCo News - The Chicago Tribune and Los Angeles Times have made a deal with hedge funds Oaktree Capital Management and Angelo, Gordon & Co LP., which will give the two hedge funds significant stakes in the now bankrupt Tribune Co., according to a Reuters report.

Hedge fund Angelo, Gordon & Co., already holds stakes in the Philadelphia Inquirer and Minneapolis StarTribune.

The Tribune has been languishing in Chapter 11 bankruptcy since 2008, the deal would also would allow for Tribune to exit bankruptcy before resolving legal claims, Reuters said.

Awaiting bankruptcy court approval, Tribune said the two hedge funds hold a "significant" amount of the $6.6 billion in loans stemming from the first part of the two-step deal that put the previous owner in control.

"The mediator is confident that the proposed plan will lead to additional constructive discussions between and among the debtors and other parties," said a court filing from Kevin Gross, the Delaware bankruptcy judge who acted as mediator, according to the paper. The mediations are ongoing.

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