Former investors led by Sam Zell who sold Tribune Co stock during a 2007 buyout had won a legal battle last Monday. The legal victory was on the protection of ex-Tribune Co shareholders from being sued twice over that deal. The buyout deal last 2007 had been blamed for the media conglomerate's bankruptcy.
A federal judge in New York said that individual Tribune creditors cannot pursue a novel lawsuit to recover money from the Zell dell. This was because another case was already filed pursuing the same claims. According to creditors, Zell's USD8.2 billion buyout left Tribune with so much debt causing an inevitable bankruptcy in 2008. The creditors wanted some of the money that was raised by issuing that debt. The money raised went to acquire Tribune stock.
Tribune had emerged from bankruptcy last year. However, former Tribune stockholders legal troubles were far from over. This was after Judge Richard Sullivan had dismissed the cases by individual creditors due to a similar lawsuit filed by a trustee. The said trustee had been working on behalf of creditors from the Tribune bankruptcy.
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