Group Drops Reorg Plan for Bankrupt Tribune Co.

Three plans remain for creditor vote

One of the four groups of lenders offering financing to end the Tribune Co.’s bankruptcy case abruptly withdrew its reorganization plan on Wednesday.

"Was there a secret deal? There was none," Evan Flaschen, an attorney representing the retreating group, told the Delaware Bankruptcy Court on Wednesday, according to Reuters, adding it "was not the best focus of our resources."

The unilateral withdrawal of the group — which was made up of 14 hedge funds, including GreyWolf Capital Management and billionaire George Soros' Soros Fund Management — means creditors are left with three plans when they vote.

That vote could happen as soon as next week, though an attorney for the Tribune Company told the court that it might be delayed so documents can be amended.