Trustee, Creditors Ask Court For Examiner To Probe Tribune Buyout
February 17, 2010 at 4:10 PM (PT)
The U.S. trustee's office is supporting a motion by WILMINGTON TRUST on behalf of deeply subordinated creditors to have the bankruptcy court in TRIBUNE CO.'s reorganization appoint an independent examiner to investigate SAM ZELL's leveraged buyout of the company.
WILMINGTON TRUST's move follows a motion by a group of junior unsecured creditors asking Judge KEVIN CAREY for the right to sue to challenge ZELL's buyout of TRIBUNE, with TRIBUNE and its senior creditors opposing the motion. The WILMINGTON TRUST motion is pushing for an independent examiner, reasoning that the examiner would have a better chance to look into the buyout without the complication of any conflicts of interest, as the unsecured creditors might have.
A hearing on the motions is set for THURSDAY morning (2/18).