Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

Trustee files revised lawsuits over Tribune buyout

[August 13, 2013]  DOVER, Del. (AP) -- A trustee established under the Tribune Co.'s bankruptcy reorganization plan has filed new lawsuits over the 2007 leveraged buyout led by billionaire Sam Zell that left the media conglomerate saddled with insurmountable debt.

The lawsuits filed earlier this month in federal district court in New York are revisions of complaints originally filed by Tribune's committee of unsecured creditors.

Tribune's plan included a settlement shielding the buyout lenders from lawsuits while allowing litigation against others, including Zell, other Tribune officers and directors, and certain shareholders who cashed out in the buyout.

A court-appointed examiner concluded in 2010 that the final steps of the buyout probably constituted fraud.

Under Tribune's plan, the first $90 million from any lawsuit recoveries would go to retirees and senior unsecured bondholders.

[Associated Press; By RANDALL CHASE]

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.