Citi, Merrill Helped Cause Tribune's Fall, Trustee Says

Law360, Los Angeles (August 6, 2013, 8:18 PM EDT) -- The litigation trustee overseeing Tribune Co.'s Chapter 11 case launched a lawsuit in New York federal court Thursday accusing Citigroup Global Markets Inc. and Merrill Lynch Pierce Fenner & Smith Inc. of causing Tribune's bankruptcy.

Marc S. Kirschner alleges Citigroup and Merrill, lured by the prospect of huge fees, set aside their “serious reservations” and assisted in a reckless leveraged buyout that funneled more than $8 billion to Tribune's shareholders while saddling the company with massive debt. That debt quickly led to the bankruptcy of the...
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