Dow Jones Bankruptcy News reports that a judge has cleared the way for The Baltimore Sun parent company the Tribune Company to emerge from Chapter 11 bankruptcy protection. In 2007, the company was purchased in a leveraged buyout by billionaire Sam Zell. The latest plan puts Zell at the bottom of payment priority, behind a group of junior bondholders.
If you’re thinking of getting your friends together to buy the local paper, you still have time, according to the Daily Bankruptcy Review:
Tribune attorneys have predicted that at least six months of action before the regulators will be necessary before the agency grants clearance, including waivers of rules limiting cross-ownership of newspapers and broadcast outlets.
It could take longer than six months, said Andrew Schwartzman, longtime chief of the Media Access Project, a nonprofit group that campaigned to boost public access to the airwaves. Media Access shut down in May, out of funding after four decades in operation.
Read Judge Clears Tribune to Emerge From Chapter 11 Protection at bankruptcynews.dowjones.com