Not sure if this is a score for the little guys, or just a big FU to the big guy, but either way we feel pretty good about it. U.S. Bankruptcy Judge Kevin Carey ruled this week that Sam Zell is officially last on the Tribune Company’s list of creditors as it emerges from Chapter 11 status–behind $759 million worth of claims from other holders of “Phones” notes.
From the Wall Street Journal:
Mr. Zell put only $315 million of his own money at risk in the deal. In recent litigation, his investment venture attempted to get equal footing with other low-ranking creditors when it comes to sharing recovery, on the basis of a claim for $225 million. The attempt failed.
Judge Carey’s conclusions, issued Monday in the U.S. Bankruptcy Court in Wilmington, Del., set the stage for a June 7 effort by the media company to win confirmation of a Chapter 11 plan and get out of bankruptcy after more than three years.
Couldn’t have happened to a nicer guy. Too bad someone couldn’t have put Zell in his place before he destroyed one of the most important media empires in America.