April 8, 2010 / 9:43 PM / 9 years ago

UPDATE 1-Tribune gets creditor agreement on bankruptcy exit

* Tribune reaches deal with creditors to exit bankruptcy

* Expects to exit bankruptcy later this year

* Says deal settles claims stemming from 2007 buyout

By Emily Chasan and Robert MacMillan

NEW YORK, April 8 (Reuters) - U.S. newspaper publisher Tribune Co said on Thursday it has agreed with creditors on a plan that would help it exit bankruptcy protection later this year.

The publisher of the Chicago Tribune and Los Angeles Times, which filed for bankruptcy protection in December 2008, said it reached a deal with major creditors and lenders including JPMorgan Chase & Co (JPM.N), Angelo Gordon, Centerbridge Partners and its Official Committee of Unsecured Creditors.

“Under the plan, the company would emerge from bankruptcy, significantly deleveraged, with its business units intact and with adequate liquidity for operating and capital needs,” Tribune said in a statement.

The company’s senior credit facility lenders would control 91 percent of the stock of the reorganized company and senior noteholders would receive a combination of cash, debt and stock to repay their claims.

The agreement also settles all potential claims stemming from the $8.2 billion Tribune leveraged buyout led by real estate developer Sam Zell in 2007, Tribune said in a statement.

Creditors of the company had claimed in earlier court proceedings that the banks and others involved in the buyout added too much debt to the company and left it insolvent.

Tribune, which sold its stake in the Chicago Cubs baseball team and Wrigley Field earlier in the bankruptcy case, said it expects it will be able to file a reorganization plan before a court hearing next Tuesday. The agreement and settlement are subject to court approval.

The case is In re: Tribune Co, U.S. Bankruptcy Court, District of Delaware, No. 08-13141.

Reporting by Emily Chasan and Robert MacMillan; additional reporting by Jonathan Stempel; Editing by Phil Berlowitz

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