Report: Tribune Creditors Ask For OK To Sue Zell
October 21, 2010 at 12:41 PM (PT)
Unsecured creditors of TRIBUNE CO. will ask the judge in TRIBUNE's bankruptcy case to rule on whether they can sue SAM ZELL and other executives involved in the company's buyout, according to the NEW YORK POST. In the event Judge KEVIN CAREY grants them the right to sue, the creditors will have until DECEMBER 7th to file the suit until the two-year statute of limitations runs out.
The right to sue ZELL for fraud has been an issue in the negotiations over a reorganization plan, with unsecured creditors insisting on the right to sue and backing TRIBUNE's own proposal to establish a litigation trust that would pay creditors in the event they win their case. The creditors have opposed plans that would have granted ZELL and other management figures in the buyout indemnity from lawsuits.