Tribune to emerge from bankruptcy
NEW YORK - A federal judge cleared the Star
Approval came despite efforts by lower-level creditors to require the newspaper to reveal the identity of its new publisher beforehand. A committee representing unsecured creditors, who will be all but wiped out in the reorganization, argued there was no way to assess the bankruptcy plan without knowing who will lead the newspaper.
The company said a steering committee put together by its new owners has a leading candidate in mind, but it declined to name that person, who still works for another company and has not yet signed a contract.
The Star Tribune will officially emerge from Chapter 11 by Sept. 28, ahead of its next financial reporting period.
US Bankruptcy Judge Robert D. Drain’s approval allows the newspaper to reduce its debt by almost $400 million - to about $100 million - as those claims are converted into ownership stakes for the creditor group led by Angelo, Gordon & Co.
Besides Angelo, the company’s new owners include Wayzata Investment Partners,