Bankruptcy Judge Defers Action On Lawsuit Against Tribune Co.

WILMINGTON, Del. — A Delaware bankruptcy judge has deferred action on the Tribune Co.'s request to halt a lawsuit alleging that Chairman Sam Zell misused an employee stock ownership plan in taking the company private in a 2007 leveraged buyout.

Attorneys said Wednesday they are awaiting an Illinois judge's ruling on Tribune's motion to dismiss the federal lawsuit, which was filed by a group of current and former Los Angeles Times staffers.

The motion to dismiss was the subject of a hearing last week. Meanwhile, Tribune sought an injunction in bankruptcy court to prevent the lawsuit from proceeding against other defendants who are not part of the bankruptcy case.

The bankruptcy judge agreed to await a ruling by the Illinois judge on the motion to dismiss.

Comments

[larry278]

Sam Zell says that the Trib & its properties will be out of bankruptcy the the end of the year. Which year, Sam, & what century?
The bankruptcy court is likely to need to liquidate the Trib [& the Trib's other property] in 2010. The Trib isn't longed for this world. It's foldsville for the Trib.
Sam Zell could rend his garments when the Trib folds & dies in an effort to get sympathy. It's too late for that Sam. You'll be remembered in Chicagoland for generations as the utility, street car & traction, magnate, Issul(sic?) is remembered in Il. Sam you may be broke but you now have a place in history. You courted fame but you have acheived long lasting infamy.