Examiner Says Tribune Was Dishonest In $8B Buyout

Law360, New York (July 27, 2010, 2:37 PM EDT) -- The examiner probing The Tribune Co.'s bankruptcy has said projections of financial solvency that underpinned real estate mogul Sam Zell's $8.3 billion leveraged buyout of the company in 2007 were "marred by dishonesty."

The findings came out in a nearly 600-page report submitted Monday in the U.S. Bankruptcy Court for the District of Delaware by Kenneth Klee, the bankruptcy professor who was appointed in April to investigate the circumstances surrounding the buyout.

Tribune bondholders had lobbied hard for an independent probe that looked into possible causes...
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