“Appellant’s emergency motion for stay of the bond order is dismissed as moot,” the Third Circuit Court of Appeals today told Aurelius Capitol Management and other junior creditors in the Tribune Co. bankruptcy. The creditors were seeking to avoid having to put up a $1.5 billion bond in order to get a six-month stay of the media company’s restructuring and emergence from Chapter 11. Citing “lack of jurisdiction,” the three-judge panel said No in a two-page decision (read it here) to hearing an appeal on the August 27th denial of the creditors’ request to alter the bond order.
Tribune Co. creditor Aurelius Capital Management today lost its emergency bid to delay the media company’s plan to emerge from bankruptcy. Aurelius sought to delay Tribune’s plan for six months without putting up the $1.5 billion bond that U.S. bankruptcy Judge Kevin Carey required when he granted a temporary stay last week. Aurelius has until Wednesday to come up with the bond, which most observers of the case have suggested is unlikely. A second emergency motion by two indenture trustees seeking to modify the $1.5 billion bond requirement is still pending.