Tribune Co. Bankruptcy Case Deadlocked

Despite hours spent over the past two weeks listening to confirmation hearings the Tribune Co. bankruptcy case is back to where is started: deadlocked.

According to the U.S. Bankruptcy Judge Kevin Carey, "the parties are stuck." The company has been fighting with its creditors as they they slowly go through the confirmation hearings intended to resolve the 17-month-old case. Since March 7 the seeming armies of lawyers have been working in Wilmington, Del. to discuss and argue for/against restructuring the company. While both parties hoped that Carey would provide insight into his decision after the two weeks, he could only say that he saw strengths and weaknesses in both approaches, meaning that he could possibly deny both sides.

If the judge cannot resolve the case in court then he will appoint a Chapter 11 trustee to resolve the case. This would be bad news for the parties as it would mean a delay of at least several months as the trustee came up to speed with everything that has happened so far. Knowing this Judge Carey asked the parties again to come to a resolution to avoid this massive delay.

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