Tribune Finally Reaches A Deal With Its Creditors

It looks like Tribune Co.’s long bankruptcy ordeal may finally be coming to an end. The company, which filed for bankruptcy nearly two years ago, has finally reached a settlement with its major creditors. Under the agreement, Tribune Co. bondholders will receive $420 million once the company emerges from bankruptcy.

A previous agreement, reached last spring, was upended when some of Tribune Co.’s bank lenders opposed it, saying the deal would force them to make a big payout, while the initial backers of Tribune’s leveraged buyout three years ago would not have to contribute any cash.

In a statement, Tribune Co. says it expects to file the new reorganization plan by Friday. The Los Angeles Times, however, reports that at least one small creditor — Aurelius Capital Management — is still planning to challenge this arrangement.