Zell: If Junior Creditors Get Money In Tribune Plan, So Should I
August 13, 2010 at 5:32 PM (PT)
If lower-priority creditors led by WILMINGTON TRUST CO. get any compensation in the TRIBUNE CO. reorganization, Chairman SAM ZELL wants repayment of $315 million of debt and equity held by his own company EGI-TRB LLC, according to a conditional objection filing by ZELL in U.S Bankruptcy Court in DELAWARE this week.
CRAIN'S CHICAGO BUSINESS reports that ZELL created EGI-TRB as part of his 2007 leveraged buyout of TRIBUNE and is currently set to receive nothing in the reorganization plan. The junior creditors are using an indepenent examiner's report to force changes to the plan, asking for more repayment of the $1 billion debt owed them by TRIBUNE.
"If the plan provides or is amended to provide any recoveries for the holders of the phones securities, then EGI-TRB's claims must be paid in full," the filing said.