Daily News: April 25, 2012

Bloomberg: Tribune Creditors Seek to Add $222MM Claim in Lawsuits

Citadel Equity Fund and Camden Asset Management, two creditors of Tribune Co., have asked U.S. Bankruptcy Judge Kevin J. Carey of the U.S. Bankruptcy Court in the District of Delaware to clarify how their unpaid notes should be considered in the company’s bankruptcy case, a Bloomberg article said.

The creditors want $222 million in unpaid notes included in the lawsuits that have said that shareholders unlawfully gained from Tribune’s 2007 leveraged buyout by Sam Zell.

The creditors claimed the right to collect money in two different court proceedings related to billions of dollars that Tribune’s creditors contend they lost because of the buyout. The $222 million value of the notes should be used in a group of lawsuits claiming the LBO was a fraud on creditors, the filing said.

Separately, during the week of April 16, Judge Carey determined the order in which unsecured creditors would be repaid. A ruling on this issue had been delayed for months as the judge sought more evidence.

Judge Carey also ruled that the company’s bankruptcy plan does not unfairly discriminate against any creditors.

To read the Bloomberg article in its entirety, click here.

Previously on abfjournal.com:

Tribune Paid Advisers $233 Million Since Chapter 11 Filing, Thursday, March 01, 2012