Tribune Company files reorganization plan

Tribune Company filed a reorganization plan Oct 22 that will turn over control of the bankrupt newspaper publisher to its leading creditors including JPMorgan Chase & Co, Angelo Gordon & Co and Oaktree Capital Management.

The plan signals an important step toward the recovery of the media company -- which owns the Los Angeles Times and the Chicago Tribune -- from what Sam Zell, the real estate developer and architect of the 2007 leveraged buyout, called "the deal from hell." The new agreement combines two previously announced settlement offers from leading lenders and a group of unsecured creditors. Some bondholders would receive $420 million, or 32.73 cents to the dollar, and interest in a litigation trust. The plan requires the approval of the court and creditors.

Daniel Golden, an attorney representing hedge fund Aurelius Capital Management LP, said on Friday they planned to file a rival plan next week. Aurelius is among the largest holders with $1.3 billion of senior Tribune bonds.