Tribune Noteholders Win Info To Sue Ex-Shareholders

Law360, Wilmington (May 17, 2011, 3:11 PM EDT) -- A Delaware bankruptcy judge granted Tribune Co. noteholders access Tuesday to critical information on shareholders that cashed out in the ill-fated 2007 leveraged buyout of the media giant, setting the stage for lawsuits seeking to claw back $8 billion in state court.

The noteholders — which sponsor a competing plan of reorganization to the one supported by Tribune and its senior lenders — are seeking to pursue state law constructive fraudulent transfer claims against the shareholders, arguing that the buyout left the company insolvent, heaping $10...
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