The US media group Tribune Company, which owns the Los Angeles Times and the Chicago Tribune, is to emerge on Monday from a Chapter 11 bankruptcy restructuring, where it had been since December 2008.
“The company will emerge with a portfolio of profitable assets, strong liquidity, and a new board of directors,” it said in a statement posted on its website.
The group is in the process of finalising a secured loan worth $1.1 billion and an asset-based revolving credit facility worth $300 million, following approval of its plans by the US telecommunications regulator, the FCC, in November.
Tribune chief executive Eddy Hartenstein was quoted as saying that “in accordance with our restructuring plan, Tribune’s subsidiary creditors and vendors will be receiving payment in full-100 percent recovery of what they are owed.”
In 2007, Chicago real-estate magnate Sam Zell took controle of the Tribune Company via a leveraged buy-out, but the company was saddled with some $13 billion in debt and filed for bankruptcy protection a year later. In 2009, Zell organised the sale of the Chicago Cubs baseball team and its iconic stadium Wrigley Field to raise fresh cash for the media group.