Quick note for those following the Tribune bankruptcy case: the confirmation hearings – currently set for Aug. 16 in the U.S. Bankruptcy Court in Delaware – may be delayed. That’s because the independent examiner in the case, Kenneth Klee, has asked for one.
On Wednesday, Klee asked the court for a 15-day extension due to the “enormity” of documents he needs to review – and the Tribune Co. is not opposed to an extension.
“The examiner’s request is not unexpected," the Tribune Co. said in a statement. "Although it may delay our confirmation hearing for a short period of time, we are supportive of the request in the interest of enabling the examiner to do a thorough and complete review.”
It means that the next chapter in the bankruptcy case now may not unfold until September.
Klee was appointed in April to investigate claims of “fraudulent conveyance” against the company.
According to Chicago Breaking Business, the original deadline for Klee’s report was July 12, but Klee asked for an extension to July 27.
In April, it looked as if the company was close to its exit from Chapter 11. But Oaktree Capital, which owns roughly 25 percent of Tribune's debt, "mounted the legal challenge that could keep Tribune in bankruptcy court well past the summer."