By Michael Oneal | Tribune
Co. inched closer Friday to having the disclosure statement in its
Chapter 11 bankruptcy case approved by a federal judge in Delaware. But it will be at
least next week before the judge actually rules on the document.

At a U.S. Bankruptcy Court hearing Friday morning in Wilmington, Del.,
lawyers for the Chicago-based media conglomerate said they resolved most
issues creditors had raised with the disclosure statement, but still
must deal with objections coming from Wells Fargo, as agents for holders
of a $1.6 billion unsecured bridge loan.

U.S. Bankruptcy Judge Kevin Carey said papers on the issue were due following the Memorial Day holiday, and that he would try to wrap up approval of the document later in the week.

Bankruptcy law requires that a proposed plan of reorganization include a disclosure statement that describes the plan, the rationale behind it, and any outstanding opposition, so creditors can decide how to vote on it in an informed way.

Wells Fargo, which opposes the plan, argued in court Friday that the document is too vague and inconsistent in describing how bridge loan holders would be treated if they oppose the plan. Carey said he, too, was confused by the document’s language. He ordered Tribune Co. lawyers to propose an alternative due next Tuesday. Wells Fargo will then have until Wednesday to respond.

If approval comes next week, Tribune Co., which owns the Chicago Tribune, Los Angeles Times and other media properties, will be allowed to send out vote solicitation packages to its creditors in anticipation of a set of confirmation hearing scheduled for the week of Aug. 16. If Tribune Co. wins enough support for its plan by then, and Carey confirms it, the company could emerge from its long stay in bankruptcy by fall.

But that’s a big “if.” Tribune Co. still faces strident opposition to the plan from creditor constituencies representing billions of dollars in claims, and even Carey has predicted a difficult and contentious set of hearings in August.