Tribune looks for exit plan in bankruptcy

WILMINGTON, Del., Nov. 19 (UPI) -- Tribune Co. is seeking an accelerated completion of its bankruptcy case in Delaware, Don Liebentritt, the firm's restructuring officer said.

A quick approval of a bankruptcy exit plan would involve accepting the basics provisions in a plan Judge Kevin Carey approved in October, The Chicago Tribune reported Saturday.

In October, Carey approved of a plan in which senior creditors would pay $534 million to junior creditors. Private equity group Aurelius Capital Management would be paid $431 million out of that.

A lower-status group of creditors known as PHONES and billionaire Sam Zell, whose leveraged buyout of the firm in 2007 lead to the collapse of the company, were to receive nothing.

In the previous ruling, however, the door was open for the PHONES and Zell to be entitled to $200 million of a $1.2 billion disbursement, the Tribune said.

The Tribune's new play calls for $534 million to be set aside for junior creditors, who could work out who gets what, while the Tribune Co. is allowed to emerge from bankruptcy.

Liebentritt, meanwhile, wrote a note to Tribune employees telling them he was seeking an accelerated exit from bankruptcy, the Tribune said.