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Trouble

Angelo, Gordon & Co. and Oaktree Capital Management LP jointly proposed an alternative reorganization plan for Tribune Co. The two firms are major creditors of the publisher of the Chicago Tribune and the Los Angeles Times. Under the proposal, structurally subordinated Tribune creditors will receive an interest in a litigation trust, which will pursue claims found viable by a bankruptcy investigator.

Coast Crane Co., a Seattle crane company, has filed for Chapter 11 bankruptcy protection. Coast is owned by Seattle-based Northwest Capital Appreciation, which bought the company in May 2007. The company has entered into an asset purchase agreement with a stalking horse bidder, Clearlake Capital Group, a private investment firm based in New York.

The corporate credit rating on Graceway Pharmaceuticals LLC was cut by Standard & Poor’s to ‘SD’ from ‘B-‘. The ratings agency also lowered its issue-level rating on the Bristol, Tenn.-based company’s senior secured bank credit facility to ‘CC’ from ‘B-‘. The lowered ratings come after Graceway Pharmaceuticals’s failure to make an interest payment on its $330 million second-lien loan on Aug. 31. The missed payment triggered a cross-default. Graceway Pharmaceuticals is a portfolio company of GTCR Golder Rauner.

Thompson Publishing Holdings Co. has filed for Chapter 11 bankruptcy, according to court filings. The company has assets between $10 million and $50 million and liabilities estimated between $100 million and $500 million. Avista Capital Partners LP is one of the company’s largest investors.

Urban Brands Inc. filed for Chapter 11 bankruptcy protection as a result of economic conditions that led to liquidity problems. The Secaucus, N.J.-based women’s clothing company had listed estimated liabilities of $100 million to $500 million and estimated assets of $10 million to $50 million. Urban Brands said it plans to pursue a sale. Urban Brands is part of the portfolios of Trimaran Capital Partners LLC, TSG Capital Group LLC and Canada-based CIBC Capital Partners.