Excerpts: “Zell, Ex-Tribune Execs Reach $200M Leveraged Buyout Deal”

  • Sam Zell, the real estate mogul, and other former officers and directors of Tribune Co. have agreed to a $200 million settlement that resolves allegations of fraudulent transactions related to the company’s 2007 leveraged buyout.
  • Some 50 individuals including former CEO Dennis FitzSimons are parties to the settlement, which sees all including Zell admit no liability or wrongdoing, Reuters says.
  • According to Reuters, Kirschner sought damages for various alleged breaches, including “unlawful” dividends and fraudulent transfers. He argued that Tribune officers and directors received more than $107 million from the leveraged buyout.
  • The bankruptcy case is In re Tribune Media Co, U.S. Bankruptcy Court, District of Delaware, No. 08-bk-13141. The multidistrict Tribune case is In re Tribune Co Fraudulent Conveyance Litigation, U.S. District Court, Southern District of New York, No. 11-md-02296.

Source: Radio+Television Business Report