It is reported that negotiations failed between the Tribune Company and its creditors on a consensual reorganization plan. Tribune Company owns broadcasting group WGN as well as several newspapers, including the Chicago Tribune.
Attorneys for the company are telling a judge in the Delaware bankruptcy court that the company has been unable to bring parties together through negotiations. Recently, JP Morgan Chase debt specialist, Angelo, Gordon and Company have chosen to drop out of the original settlement agreement that would have made them the new owners of the Tribune Company.
Soon, the attorney for the Tribune Company says that the organization will file amendments to its plan in a final attempt to gain support from its creditors. If the amendments do not work, Tribune Company could file a lawsuit over fraudulent transfer claims related to its 2007 leveraged buyout.