Tribune Creditors Plan to Sue Chairman Sam Zell
Media company expected to file reorganization plan Friday
NEW YORK - Tribune's unsecured creditors plan to ask a judge to rule on whether they have the right to sue chairman Sam Zell and others who played key roles in the ill-fated $11.7 billion buyout of the media firm, according to the New York Post.
They would have until Dec. 7 to actually file their suit.
Tribune plans to file a bankruptcy reorganization plan on Friday that would establish a legal trust, so creditors, in return for their approval of the plan, can follow through with their litigation and collect money if they prevail.
Lender JPMorgan is supporting the new plan in return for immunity from the suit, according to the Post.
The news comes after a report that Tribune's board plans to replace CEO Randy Michaels with a four-person "office of the president."