Tribune Co. (TRBCQ) creditors are suing Tribune Chairman Sam Zell and lender JPMorgan Chase (JPM) of misconduct in Zell's $8.2 billion acquisition of the media company in 2007, the Associated Press reported Tuesday.

Creditors, which filed their complaints at the U.S. Bankruptcy Court in Delaware on Monday, are seeking billions in damages from Zell and JPMorgan, according to the AP story.

Zell, a real estate mogul, bought the Tribune Co., which includes the Chicago Tribune, Los Angeles Times and more than 20 broadcast stations, primarily with debt. The company then declared bankruptcy in late 2008, leading to fraud allegations from both former employees and bondholders. Many employees' retirement funds were wiped out in the process.

Tribune is attempting to reorganize, while its CEO Randy Michaels resigned last month amid allegations of workplace hostility.

Tribune representatives didn't immediately respond to a request for comment from AOL Daily Finance.


Increase your money and finance knowledge from home

What is Short Selling?

Make a profit when stocks prices fall.

View Course »

What Is Your Risk Tolerance?

Answer the question "What type of investor am I?".

View Course »

Add a Comment

*0 / 3000 Character Maximum

1 Comment

Filter by:
johnskii

J.P. Morgan Chase commiting Fraud? Ahh come on they would do nothing like that ;-)

November 03 2010 at 7:38 AM Report abuse rate up rate down Reply