On October 31, 2011, after reciting the parable of The Scorpion and the Fox, the US Bankruptcy Court for the District of Delaware rejected two competing plans of reorganization for the Tribune Company (Tribune), one proposed by Tribune, the creditors' committee and certain senior lenders (the DCL Plan) and the other by Aurelius Capital Management, L.P. and certain holders of notes issued before the 2007 leveraged buyout of Tribune (the Noteholder Plan).

The main difference between the two plans is that the DCL Plan proposed settling certain causes of action relating to the leveraged buyout of Tribune with senior lenders and bridge lenders who loaned over $10 billion to Tribune. In contrast, the Noteholder Plan proposed to vigorously pursue litigation of those claims, arguing that the settlements were not fair and equitable to the impaired classes that did not adopt the DCL Plan.

Although the Bankruptcy Court approved of the DCL Plan's settlement proposal, certain other language in the DCL Plan must be revised before the Bankruptcy Court can confirm it. The Bankruptcy Court stated that if a viable exit strategy was not forthcoming soon, it would consider appointing a Chapter 11 trustee.