Monday, June 14, 2010

Tribune Co. bonuses opposed by Federal Trustee and lenders; $43 million plan for managers

The Tribune Co. won't be handing out $43 million in bonuses just yet. Lenders joined the Federal Trustee in opposing the move to give out cash to managers -- $5.7 to top management -- asking the bankruptcy judge to squash the payouts.

"The debtors themselves have proposed a reorganization plan which promises nothing or next-to-nothing for various classes of Tribune creditors," U.S. Trustee Roberta DeAngelis said in papers filed Thursday according to the Chicago Tribune. "Now is not the time for yet another round of bonuses."

The plan to pay out $43 million this year would bring the total payout to $115 million since the Tribune Co. filed for bankruptcy protection.