Zell, other former Tribune executives reach $200 million settlement over LBO


(Reuters) – 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.

FILE PHOTO: Sam Zell, founder and chairman at Equity Group Investments, speaks during the SALT conference in Las Vegas, Nevada, U.S. May 17, 2017. REUTERS/Richard Brian

Marc Kirschner, a litigation trustee representing Tribune creditors, filed the proposed settlement on May 31 with the U.S. bankruptcy court in Wilmington, Delaware. The accord requires court approval, and a hearing is scheduled for July 11.

Roughly 50 defendants, including former Chief Executive Dennis FitzSimons, agreed to the settlement, without admitting liability or wrongdoing.

Lawyers for Zell and FitzSimons did not immediately respond on Wednesday to requests for comment.

Zell took Tribune private in an $8.2 billion buyout in December 2007 that saddled…

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