Tribune Seeks To Block Suit By Junior Creditors Over Buyout
February 12, 2010 at 7:13 AM (PT)
TRIBUNE CO. joined its senior creditors THURSDAY to urge the Bankruptcy Court to block an attempt by the company's junior creditors to sue over the leveraged buyout that gave SAM ZELL control in 2007.
The "Official Committee of Unsecured Creditors" filed a motion with the court FEBRUARY 2nd asking for Judge KEVIN CAREY's permission to sue, alleging that ZELL's buyout was fraudulent. The senior creditors told CAREY that settlement negotiations continue and that litigation would bring "irreversible attendant costs and consequences."
TRIBUNE has told the court that it may be ready to bring its reorganization plan to the court by FEBRUARY 28th; the next major hearing in the process is set for next THURSDAY (2/18).