By: Randall Chase
Attorneys have agreed on the appointment of an independent bankruptcy examiner to look at issues surrounding the 2007 leveraged buyout of Tribune Co.
Attorneys in Tribune’s Chapter 11 case presented a proposed order on Monday that outlines what the examiner would do.
Under the proposal, the examiner would rely on information already submitted in the case because of questions raised by Tribune’s committee of unsecured creditors and a group of bondholders. The examiner also would review a settlement Tribune announced with certain creditors that paved the way for the filing of its reorganization plan last week.
The bondholders allege that JPMorgan, Bank of America and other banks that financed the buyout engaged in fraud because they knew the debt load would leave Tribune insolvent.