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Supreme Court Declines to Probe Tribune Leveraged Buyout Payouts

April 19, 2021, 1:33 PM

Tribune Co. creditors vying to recover money from former shareholders who cashed out in the media company’s 2007 leveraged buyout lost their second attempt to have the U.S. Supreme Court review their case.

The company filed for bankruptcy in 2008, a year after Sam Zell paid $8 billion to take it private in a heavily leveraged deal. But its creditors—which include Deutsche Bank Trust Co. Americas, Delaware Trust Co., Wilmington Trust Co., and Tribune retirees—continued to argue that they can pursue funds from bought-out shareholders.

Section 546(e) of the bankruptcy code protects certain securities transactions from actions by bankruptcy trustees...

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