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Real estate mogul Sam Zell bought out the Tribune Co., which publishes The LA Times and Chicago Tribune, in 2007 and proceeded to run it into the ground.Now creditors for the bankrupt company want to Sue Zell for leaving Tribune Co. with stacks of debt.
The request made by the official committee of unsecured creditors came in a court filing Monday, though it did not signal an imminent lawsuit.
The committee said the unsecured creditors do not want to interfere with ongoing negotiations with Tribune over its Chapter 11 reorganization plan. U.S. Bankruptcy Judge Kevin Carey in Wilmington, Del., appointed a mediator for the talks this month after a previous deal broke down.
Although the committee said its creditors would “stand down” while the mediation continued, the committee had to seek permission now so it can meet a Dec. 8 deadline to file a lawsuit, should one be necessary. Dec. 8 is two years from when Tribune filed for Chapter 11 protection and is the deadline under the bankruptcy code to initiate a lawsuit, the committee said.
Meanwhile, The Wrap’s Peter McAlevey says the prospect of former Disney chief Michael Eisner running the Tribune Co. makes “perfect sense.”
In my nefarious career, I happened to have worked for both the L.A. Times and Michael Eisner. Perhaps more than most I have some insight into each’s strength and weaknesses. In fact, I can hardly think of any downsides.
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