Legal News

Tribune confident it will leave Ch. 11 in 2010

By (Breaking Legal News)

Tribune Co. believes it will still emerge from bankruptcy protection this year even though a court-appointed examiner concluded that talks leading up to a leveraged buyout of the company had bordered on fraud.

In a memo to employees, Tribune CEO Randy Michaels and Chief Operating Officer Gerald Spector said they agreed with only some of the conclusions in Monday's report, while disputing others. They did not go into specifics, saying it would be premature to comment while the full examiner's report remains under court seal.

A hearing on whether to release the nearly 700-page document was scheduled for Thursday in Wilmington, Del.

The 2007 leveraged buyout took the company private and ultimately helped land it in Chapter 11. The deal has drawn scrutiny from bondholders who are trying to recover more of their money.

Real estate mogul Sam Zell led the deal, which piled on what turned out to be an unsustainable amount of debt. The company, which owns the Chicago Tribune, Los Angles Times and other properties, filed for Chapter 11 protection in December 2008.

Full post as published by Breaking Legal News on July 28, 2010 (boomark / email).