Creditors Sue Zell, Banks Over Tribune Bankruptcy

Summary


WILMINGTON, Del. (Reuters) - Tribune Co. creditors filed sprawling lawsuits on Monday [Nov. 1] that take aim at Sam Zell, his banks and advisers for the disastrous leveraged buyout that plunged the publisher into bankruptcy two years ago.

The lawsuit accuses the billionaire Mr. Zell and the Tribune board of defrauding Tribune's creditors by pursuing the buyout of the owner of the Los Angeles Times and Chicago Tribune knowing it would lead to bankruptcy.

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Extract


Creditors Sue Zell, Banks Over Tribune Bankruptcy

"This LBO Transaction is among the worst in American corporate history," the creditors said in the complaint. "The LBO was designed to cash out the large shareholders of Tribune and to line the pockets of de...

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