by Whet Moser
TribCo just filed its reorganization plan. This caught my eye:
The group [of senior creditors] also decried a proposal in the settlement agreement that would set aside as much as 7.5 percent of the new company's equity for future management compensation programs....
According to Reuters, the equity of the reorganized TribCo would be $4.1 billion, making the value of the future management compensation programs worth up to $307.5 million—which includes, if I'm reading this correctly, some of the controversial bonus provisions the company was previously trying to pay out while still in bankruptcy.
Oh, and this:
But the Oaktree group balked at the deal and in Monday's filing drew a line between investors who bought the debt in the open market and lenders like JPMorgan, who collected more than $2 billion in interest payments and fees before the heavy debt burden from the deal helped push Tribune Co. into bankruptcy.
On the bright side, the fact that I can get a line from a credit card company (much less a mortgage or something) at the sort of rate apparently given to large national institutions borrowing billions of dollars, makes me feel slightly better about my financial history.