The biggest media industry bankruptcy ever will end today after four years with Tribune’s chief creditors — Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase & Co — empowered to run the Chicago based broadcasting and newspaper power. The reorganization values the company at about $4.5B. The new management is expected to look for buyers for its assets which include 23 television stations and major metro dailies such as the Los Angeles Times and Chicago Tribune. The company will close on a $1.1B senior secured term loan, which will be used to pay off creditors, and a $300M asset based revolving credit facility to fund its operations. It also will have a new board that consists of CEO Eddy Hartenstein, Oaktree’s Bruce Karsh and Ken Liang, former Disney exec Peter Murphy, former Yahoo and News Corp exec Ross Levinsohn, lawyer Craig Jacobson, and former Fox and Discovery exec Peter Liguori. He’s widely believed to be in line to take the top job at Tribune. Today’s release says that the board will meet “in the next several weeks” and Hartenstein “will remain in his current role until that time.” The plan to emerge from bankruptcy ensures that creditors and vendors “will be receiving payment in full—100% recovery of what they are owed,” Hartenstein says. “These long-term relationships are very important to the company and we are pleased to be successfully resolving these obligations.” Tribune ran into trouble after 2007 when real estate mogul Sam Zell took on debt to finance his $8.2B acquisition. He found himself over his head the following year when the recession hit, and newspaper values plummeted.
Tribune Will Emerge From Bankruptcy Protection Today
What's Hot on Deadline
'The Boys': Antony Starr, Chace Crawford, Dominique McElligott & Jessie Usher Cast In Amazon’s Superhero Drama Series
Bart & Fleming: What Leo Plays In Tarantino Film; Why Gender Argument On Wahlberg/Williams Was Wrong
Ellen Pompeo On New 'Grey's Anatomy' Deal, The Show's End Game & Legacy And Her Post-'Grey's' Future - Q&A
Latest Business News
- Brigitte Bardot Calls #MeToo Movement “Hypocritical And Ridiculous”
- Harvey Weinstein Felt “Anger And Acceptance” Days Before His Downfall
- Head Of Hollywood Chamber Of Commerce Leron Gubler Announces Retirement
- Jane Fonda Talks TV’s Power, Tom Selleck Describes His Acting Approach At Brandon Tartikoff Awards — NATPE
- Donald Trump Praises Apple (And Pats Himself On The Back) For Creating Jobs In U.S.
- Sundance Drama ‘Burden’ Spawns Book That Sells To Convergent In Publishing Auction