In their proposal, Oaktree Capital Management LP and Angelo, Gordon & Co, outlined what they believe is the “next best alternative”. Tribune Co, which is home to the Chicago Tribune and the Los Angeles Times, and its creditors are expected to take part in mediation next week and will try to decide upon a course of action so the company can emerge from Chapter 11 bankruptcy.
If the mediation fails to produce desired results, the recent proposal by the Tribune Co’s creditors may in fact be the best alternative. The company’s restructuring efforts unraveled after an investigation into the $8 billion buyout led by financier, Sam Zell. Now, the bankruptcy has been prolonged due to creditors battling over who is to blame for the company’s financial failure.
In court documents, representatives from Oaktree and Angelo, Gordon & Co said they presented their proposal “in the event that the upcoming mediation does not produce a fully-consensual resolution to these cases.”