Tribune Creditors Move To Challenge 2007 Buyout

Law360, New York (February 2, 2010, 4:41 PM EST) -- Tribune Co.'s unsecured creditors are seeking court permission to challenge billionaire Sam Zell's 2007 leveraged buyout that left the news giant saddled with more than $10 billion in debt.

In a motion filed Monday with the U.S. Bankruptcy Court for the District of Delaware, the official committee of unsecured creditors asked for an order granting it the authority to prosecute a derivative cause of action.

There is substantial evidence that the LBO debt was fraudulently incurred and should be avoided, that proofs of claim from senior...
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