Two plans to lift the Tribune Company, owner of the Los Angeles Times and Chicago Tribune, out of its three-year stay in bankruptcy have been rejected.
Delaware's chief bankruptcy judge, Kevin Carey, turned down a proposed settlement advanced by the company and another by noteholders (creditors).
Tribune, the fifth largest newspaper publisher in the US and also owner of more than 20 TV stations, filed for bankruptcy in 2008.
That was one year after financier Sam Zell led a $13bn leveraged buyout of the company.
Judge Carey clearly favoured the company-backed plan, but was confronted by a stalemate because each side can veto the other.
He warned that if a viable exit strategy did not present itself, he would appoint a trustee to replace Tribune's management.
Source: Reuters
