You knew that couldn’t last.
Bloomberg reports that Zell officially wants a piece of all monies won by unsecured creditors in the Tribune bankruptcy case–including those of former employees.
The demand, made through the Zell-controlled company EGI TRB LLC, came in one of the disputes being heard in bankruptcy court over how to split any money creditors win in dozens of lawsuits over claims the buyout was a fraud on creditors. U.S. Bankruptcy Judge Kevin Carey began a two-day hearing today about the disputes.
“In the ultimate display of chutzpah, Zell and EGI are asserting that their tainted claims should now be treated on par with innocent creditors who had nothing to do with the LBO,” a group of about 185 retired managers and other highly paid former employees said in court papers.
We’d like to commend the group of former employees for their “ultimate display” of restraint in forgoing the use of any four-letter words in describing Zell.