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Tribune Lenders Race the Clock to File Suit Against Sam Zell NY Post

Tribune lenders are racing to file a lawsuit by tonight's midnight deadline against real estate mogul Sam Zell, alleging the leveraged buyout of the company he engineered caused the business to quickly collapse, the New York Post reports.

Lawyers for the lenders will allege, sources told the Post, that Zell's Tribune took on too much debt and made the company immediately insolvent.

The report said that any recoveries from the Zell suit will be combined with the proceeds, if any, from related cases and will be placed in a litigation trust to be paid out to creditors, citing a person close to the situation.