Trustee files revised lawsuits over Tribune buyout
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.