Tribune's official committee wants authority to settle LBO claims

By Lisa Kerner

Charlotte, N.C., Feb. 2 - Tribune Co.'s official committee of unsecured creditors and its various debtor-subsidiaries asked the court for the authority to "commence, prosecute and settle" claims and counterclaims in connection with the debtors' 2007 leveraged buyout transaction, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is scheduled for Feb. 18.

As previously reported, in January Tribune indenture trustee and member of the official committee of unsecured creditors Wilmington Trust Co. asked the court to appoint an examiner for the company's bankruptcy case to investigate potential claims arising from the LBO transaction.

The trustee said it has learned that the company's estates hold very significant causes of action against several prospective defendants, including current and former members of the committee, arising from Tribune's LBO.

According to Wilmington Trust, those causes of action include claims for fraudulent conveyance, breach of fiduciary duty, aiding and abetting the breach and equitable subordination.

The LBO debt drove Tribune into Chapter 11 debt, the trustee said.

Tribune, a Chicago-based media company, filed for bankruptcy on Dec. 8, 2008. Its Chapter 11 case number is 08-13141.

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