Del. Bankruptcy Court Rejects Two Competing Plans for Tribune Company to Exit Ch. 11

The U.S. Bankruptcy Court for the District of Delaware Oct. 31 concluded that neither of two competing Chapter 11 plans offered to end Tribune Company’s three-year stay in bankruptcy meet the requirements of Bankruptcy Code Section 1129 for confirmation (In re Tribune Company).

Explaining his reasoning in a 126-page opinion, Judge Kevin J. Carey found that neither the Company plan nor the Noteholder plan is confirmable. “I am uncertain, at this point, what steps the Debtors or other parties may take as a consequence of this decision,” he said.

The main difference between the two competing plans ...