Published December 31, 2012
Media giant Tribune Co, owner of the Los Angeles Times and the Chicago Tribune, emerged from bankruptcy on Monday, ending four years of Chapter 11 reorganization.
Chicago-based Tribune's said on Sunday that its portfolio would include eight major daily newspapers and 23 TV stations.
As part of the Chapter 11 exit, the company closed on a new $1.1 billion senior secured term loan and a new $300 million asset-based revolving credit facility.
The term loan will be used to fund certain payments under the plan of reorganization and the revolving credit facility will be used to fund ongoing operations, the company said.
Upon exiting bankruptcy, Tribune will have issued to former creditors a mix of about 100 million shares of new class A common stock and new class B common stock and new warrants to purchase shares of new class A or class B common stock.
Chief executive Eddy Hartenstein will remain in his role until the new board ratifies the company's executive officers.
The company announced a seven-person board that includes Hartenstein, former Fox Entertainment chairman Peter Liguori, former Yahoo interim CEO Ross Levinsohn and Peter Murphy, Walt Disney's former top strategic planning executive.
Liguori is expected to be named Tribune's new CEO.
In November, Tribune received regulatory approval from the Federal Communications Commission to transfer its broadcast licenses to the owners who would take it over after emerging from bankruptcy.
The company's reorganization plan was confirmed by the Delaware bankruptcy court in July.
The case is In re: Tribune Co et al, U.S. Bankruptcy Court, District of Delaware, No. 08-13141.
(Reporting by Sakthi Prasad and Ashutosh Pandey in Bangalore; Editing by Matt Driskill and Joyjeet Das)