Corporate Acquisitions

Tribune judge weighs competing plans

Forbes |

In Brief...

The judge presiding over Tribune Co.'s bankruptcy case on Monday called on attorneys to tone down their attacks on the descriptions of competing reorganization plans being forwarded by the company and various creditor groups.. Potential legal claims surrounding the buyout have been a focal point in the case and led to the scrapping of Tribune's initial reorganization plan after a court-appointed independent examiner concluded that certain aspects of the LBO engineered by real estate mogul Sam Zell likely constituted fraud.. But David Bradford, an attorney for Zell, told Carey that none of the proposed disclosure statements makes it clear that the examiner determined that any legal claims against Zell likely would not succeed.. Tribune, which owns the Chicago Tribune, Los Angeles Times and other newspapers and several radio and TV stations, filed for bankruptcy protection in December 2008, less than a year after the $8.2 billion buyout. That plan would allow the settlement of legal claims against senior lenders and bridge lenders while allowing lawsuits to proceed against other parties, including Zell and Tribune officers and directors..

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