Based in Chicago, the company said it would be emerging from the bankruptcy process with a portfolio of assets
January 2, 2013 – Tribune, the U.S. media group, and owner of both the Chicago Tribune and the Los Angeles Times is scheduled to emerge on Monday from bankruptcy that will end four years of reorganization under Chapter 11.
Based in Chicago, the company said it would be emerging from the bankruptcy process with a portfolio of assets that are profitable including eight daily newspapers and 23 different television stations. The Tribune’s board of directors will be new.
The CEO of Tribune, Eddy Hartenstein, said the company would emerge as a leading and dynamic multimedia organization with a very good mix of powerful brands in a number of major markets, profitable assets, enough liquidity for investments and operations and substantially less debt.
As part of Tribune’s emergence out of Chapter 11, it will close on a $1.1 billion senior term loan as well as an asset based line of credit of $300 million. The billion dollar plus term loan will fund payments the company has under the reorganization plan, while the revolving credit line would fund operations, said company officials.
The Tribune, upon its exit from bankruptcy protection will have issued its former creditors a mix of 100 million shares of class A common stock along with new common stock that is class B and new warrants that can purchase more shares of class A or B stock.
Hartenstein will remain on as the CEO until the new board of directors can ratify new executive officers. A seven-person board was announced by Tribune and includes Hartenstein; Peter Liquori the former chairman of Fox Entertainment; Ross Levinsohn the former interim chief of Yahoo; and Peter Murphy the former top planning executive for Walt Disney.
It is expected that Liquori will get the nod as the new CEO of Tribune. Last month, the group was approved by the Federal Communications Commission to transfer over its broadcasting licenses to those owners who are taking control of the company when it emerges out of bankruptcy.