Tribune Creditors Pissed, Natch

Unsurprisingly, the Delaware court’s decision last week to award Tribune Co. execs $45 million in bonuses for a year when the company was under Chapter 11 bankruptcy pissed off a bunch of people, and not only the media publisher’s employees.

Junior creditors, who have been owed money by Sam Zell and keep getting rebuffed in their requests to handle the bankruptcy management of the company, have asked the U.S. bankruptcy court to file a complaint against Zell and his management, claiming that they knew the entire time that they were driving the Tribune company into the ground, and in fact it was part of their game plan all along. The complaint alleges that Zell’s 2007 buyout was a “fraudulent conveyance” and asks that those senior lenders who helped fund the deal be cut off from all of Tribune’s assets.

Read More:
Junior Creditors Call Tribune Co. Bankruptcy ‘Fraudulent Conveyance’ –Editor & Publisher

Previously: Bankrupt Tribune Company Hands Out $45 Million In Bonuses

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