Still too high if you ask me1
Samuel Zell, the real-estate mogul behind the disastrous leveraged buyout that plunged Tribune Co. into bankruptcy, came out the biggest loser in an inter-creditor fight over expected payouts from the Chapter 11 proceeding.
Judge Kevin Carey of the U.S. Bankruptcy Court in Wilmington, Del., found Mr. Zell’s investment ranked dead last in the Chapter 11 payment priority competition, “at the bottom of Tribune’s capital structure.” Mr. Zell’s claims are junior to $759 million of claims from holders of the so-called Phones notes, the judge said.
Mr. Zell has labeled the Tribune LBO “the deal from hell.” The two-step transaction in 2007 piled an additional $8 billion in debt on the publishing and broadcasting operation, which filed for Chapter 11 bankruptcy less than a year later. Tribune publishes the Los Angeles Times, Chicago Tribune and other newspapers as well as TV stations.
(click here to continue reading Sam Zell Ranks Last Among Tribune Creditors – WSJ.com.)
- or numerous people who work, or once worked, for Mama Tribune [↩]