Tribune again fails to get OK to begin plan vote

Fri May 28, 2010 1:07pm EDT

* Failure again delays voting on plan

* Tribune to amend statement to try to resolve objections

By Tom Hals

WILMINGTON, Del., May 28 (Reuters) - Tribune Co TRBCQ.PK failed on Friday for a second time to get court approval to begin polling creditors on its bankruptcy plan as lenders objected to the way the media company describes the reorganization.

The owner of the Chicago Tribune and Los Angeles Times newspapers and radio and television stations has proposed turning over its operations to holders of $8.7 billion dollars in senior loans, leaving little for other creditors who hold more than $3.6 billion in claims.

Bankrupt companies must have court approval of a disclosure statement that is sent to creditors and describes the plan of reorganization they vote on.

The company returned to court on Friday after failing to get court approval last week for the document. It has worked to resolve objections through negotiations and by allowing some critics of the plan to send their own letters to creditors along with the disclosure statement.

However, Tribune failed to win over holders of the company's bridge loans. The group objected to the way the plan describes the treatment of their $1.6 billion in claims, which will get almost no recovery.

The company will file an amended disclosure on Tuesday and the bridge loan group will file its reply on Wednesday.

The case is In re: Tribune Co et al, U.S. Bankruptcy Court, District of Delaware, No. 08-13141. (Reporting by Tom Hals. Editing by Robert MacMillan)

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