By: Randall Chase, AP Business Writer with E&P Staff
Tribune Co. backed off its threat to file a take-it-or-leave-it reorganization plan for its emergence from Chapter 11 Friday, saying in a memo to employees it would continue negotiations with its creditors.
“Given the ongoing nature of those discussions, we have decided not to file any amendments to our plan at the present time,” Tribune CEO Randy Michaels wrote. “We’ll continue to keep you aware of developments in the Chapter 11 process as we go forward.”
Creditors withdrew their support of a plan hammered out earlier this year after an independent examiner released a report last month concluding that Tribune’s 2007 leveraged buyout may have involved fraud.
Tribune attorneys told a Delaware bankruptcy judge last week that they would file a revised plan by Friday in a final effort to win creditor support. They warned that if creditors don’t go along, Tribune may be forced to sue over the fraudulent transfer issues raised by the examiner.