After more than three years, U.S. Bankruptcy judge Kevin Carey has officially signed off on a plan for Tribune Company to emerge from bankruptcy. According to the Chicago Tribune, the media company will soon be in the hands of a conglomerate of senior investors, led by the LA-based investment fund Oaktree Capital Management.
Looks like we won’t have old Sam Zell to pick on anymore…Or won’t we? Apparently, the Tribune Co. legal fireworks aren’t over yet.
From the Chicago Tribune:
Junior creditors led by New York investment fund Aurelius Capital Management have said they plan to appeal the decision issued in Delaware by U.S. Bankruptcy Judge Kevin Carey. But few experts expect appeals to gain traction because of the careful way Carey fashioned his confirmation opinion.
Instead, junior creditors will likely shift their attention a federal district court in New York where they are suing 35,000 former Tribune Co. shareholders who cashed out in the company’s 2007 leveraged buyout, certain current and former Tribune Co. directors and officers as well as Sam Zell, the deal’s architect. The litigation could keep the controversy surrounding the litigation alive in the courts for years.
And the never-ending saga of Tribune’s bankruptcy continues.
In the meanwhile, all you philanthropic, fifth estate-friendly billionaires better get those checkbooks ready, because something tells us the LA Times will be up for grabs before the end of the year. Hey, David Geffen, now might be a good time to take a peek down south at the Union-Tribune and ask yourself if you want this town to suffer the same fate.