Report: Tribune Creditors Planning to Sue Zell

By Andrew Gauthier 

The New York Post

Tribune creditors plan to ask a judge tomorrow to rule on whether they have the right to sue Sam Zell and others who had a role in the $11.7 billion buyout of the newspaper publishing company that ended in bankruptcy, The Post has learned.

If the judge rules in their favor, the creditors would have until Dec. 7 to file their suit before the statute of limitations runs out. They have two years from the time the company filed for bankruptcy to bring their case.

The unsecured creditors will also back a new reorganization plan that Tribune plans to file tomorrow that would establish a litigation trust so bondholders can follow through with their suit and collect proceeds if they win the case. More…