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...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.