Tribune committee files suit to recover $178.45 million in transfers

By Caroline Salls

Pittsburgh, Dec. 9 - Tribune Co.'s official committee of unsecured creditors filed a lawsuit Wednesday against JPMorgan Chase Bank, NA, Merrill Lynch Capital Corp. and other leveraged buyout preference defendants in an effort to recover preferential transfers of property made by the company in the 90 days before it filed for bankruptcy, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the committee alleged that LBO lender JPMorgan received $143.33 million in payments from Tribune during the preference period, and Merrill Lynch received $35.12 million.

The committee said the other LBO preference defendants received payments from JPMorgan and Merrill Lynch from the transfer amounts in question.

According to the filing, Tribune was insolvent when the transfers were made.

Tribune, a Chicago-based media company, filed for bankruptcy on Dec. 8, 2008. Its Chapter 11 case number is 08-13141.

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