Sam Zell and more than 50 ex-directors and former
executives of the Tribune Co. have agreed to pay $200 million to settle a suit
filed by unsecured creditors, the Chicago Tribune and others reported.
The news
comes more than ten years after the company went private in a leveraged buyout
that Zell dubbed “the deal from hell.” The company eventually filed for
bankruptcy. It came out of Chapter 11 bankruptcy in 2012.
The
settlement agreement is pending approval in a Delaware
Despite the
deal, “thousands of ordinary shareholders may still be forced to give back some
of the proceeds from the 2007 buyout — if the litigation trust representing the
unsecured creditors prevails in still-unsettled actions,” the Tribune reported.
The
deadline for objections to the agreement is June 17, with an approval hearing
set for July 11.
The
settling defendants include former Tribune Co. CEO Dennis FitzSimons; Crane
Kenney, president of business operations for the Cubs; Miles White, chairman
and CEO of Abbott; and Tim Knight, CEO of Tribune Publishing, the Tribune
reported.
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