Thus, the LBO Lenders could proceed in any manner against any Guarantor Subsidiary for the full amount of the guaranteed indebtedness.
It is undisputed that the LBO Lenders that funded this indebtedness in both steps had full knowledge regarding the structure of these transactions, the sources and actual uses of funds, and the purposes of those uses.
The Global Settlement and the Plan have the support of a cross-section of the Debtors' creditor constituencies, including LBO Lenders (such as JPMorgan Chase Bank, N.A. and Angelo Gordon & Co. LP), the largest single Noteholder, Centerbridge (holding approximately thirty-seven percent (37%) of the Senior Notes), one of the indenture trustees for the Senior Noteholders, and Law Debenture (solely in its capacity as successor trustee for certain of the Senior Notes).
The releases are a central and important element of both the Global Settlement and the Plan because, among other things, they are necessary to provide the LBO Lenders with a full and final resolution of disputed claims against them, will enable the Debtors to exit bankruptcy sooner than otherwise would be possible and will allow the Reorganized Debtors upon emergence to devote their full time and attention to their businesses, without the distraction of litigation.
All the transactions within Step One and Step Two, respectively, closed contemporaneously: funds came into Tribune's accounts and were wired out immediately to make payments to the Selling Stockholders, the LBO Lenders, and other parties.