Tribune allowed to withdraw motion on bonuses, will include in reorganization plan

Judge allows Tribune to drop bonus motions

WILMINGTON, Del. — A Delaware bankruptcy judge has granted the Tribune Co.’s request to withdraw a motion asking the court to approve two management bonus plans worth more than $20 million.

Following extensive court filings and oral arguments over the bonus plans, the company decided not to wait for the judge’s ruling but to instead simply fold them into a reorganization plan.

The judge on Tuesday granted the request, overruling objections by the U.S. trustee and a union for employees of The Baltimore Sun, which oppose the bonuses.

The judge also granted banks that financed Tribune’s 2007 leveraged buyout more time to respond to a lawsuit in which bondholders claim that the banks knew that the resulting debt load would leave the company insolvent.