Real estate billionaire Sam Zell and other former officers and directors of Tribune Co. have reached a $200 million settlement resolving allegations of fraudulent transactions related to the media company’s disastrous 2007 leveraged buyout.
The billionaire left a nasty tax mess behind for Tribune, which recently exited Chapter 11 proceedings.
The IRS and local tax authorities are likely seek more than half a billion dollars from Tribune Co. in regard to the sales of the Chicago Cubs baseball team and Long Island, N.Y., newspaper Newsday under former CEO Sam Zell.
At the end of 2007, real estate tycoon Sam Zell took control of Tribune Co. in a deal that promised to re-energize the media conglomerate. But the company struggled under the huge debt burden the deal created, and less than a year later, it filed for bankruptcy. In the first of a four-part series, the Chicago Tribune examines what happened to one of Chicago’s most iconic companies. Tribune subscribers can read the story here.
A judge’s finding last week for holders of certain notes could support recovery claims of the company chairman.
The one-time CEO of DirecTV who has been publisher of Tribune’s Los Angeles Times since August 2008 will attempt to lead the beleagured company out of bankruptcy as president and CEO.
Federal authorities are taking a closer look at the stock transfer at the heart of billionaire Sam Zell’s disastrous leveraged buyout of Tribune Co., after a U.S. District Court last week determined a portion of the 2007 deal was a “prohibited transaction” under federal law.
Sam Zell, the billionaire real estate mogul who engineered the disastrous 2007 buyout of Tribune Co., said he will resign his position as chairman shortly after the company exits bankruptcy.
A group of creditors in the Tribune Co. bankruptcy case is suing virtually all the key principals involved in the company’s $8.2 billion buyout, alleging that greed and misconduct of the media company’s lenders, advisers and own leaders led to its financial downfall.