A Bay Area hedge fund has retained Emergent Legal to represent it in the multidistrict litigation arising from the leveraged buyout ("LBO") and subsequent bankruptcy of the publishing giant Tribune Company, which is pending in the United States District Court for the Southern District of New York.
In 2007, Tribune entered into a two-step LBO, taking on almost $11 billion in debt in order to repurchase all outstanding shares. In 2008, amidst a worldwide decline in the publishing industry, Tribune filed for chapter 11 bankruptcy protection. A sprawl of lawsuits followed, including two brought by individual creditors and the bankruptcy trustee against thousands of consultants, advisers, officers, and directors, as well as every investor who sold shares during the Tribune LBO -- including our client.
We believe our client has done nothing improper and could not have anticipated Tribune's insolvency, and accordingly has solid statutory and equitable defenses that ought to result in dismissal. We will provide updates on this litigation as it progresses. In the meanwhile, general information can be found here and here.
Emergent was founded to represent sophisticated clients in high-stakes litigation. To find out whether we can help you, contact us.