Tuesday, December 7, 2010

Tribune Lenders to File Suit Against Sam Zell Tuesday

By Gerrg Szalai and Lindsay Powers - The Hollywood Reporter 

Tribune lenders are looking to file a lawsuit by midnight against Sam Zell, arguing the  Zell-led buyout of the media company caused the business to collapse under a pile of debt, the New York Post reported Tuesday. Any recoveries from the lawsuit will be placed in a litigation trust to be paid out to creditors, it said. The Post also reported of sinking morale in parts of the Tribune empire.

WPIX Television, Channel 11 in New York, for example, has seen layoffs and other cost cuts. "There's a whiff of desperation in the newsroom," a WPIX employee told the Post. A Tribune spokeswoman told the paper that the station "remains committed to delivering the highest-quality newscast, and we currently have the right staff in place to move the ratings up."

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