Trib Co. fighting trustee's request for Zell probe

Tribune Co., the second-largest newspaper publisher in the U.S., is in bankruptcy court today opposing a motion by an indenture trustee for authorization to conduct its own investigation into the $13.8 billion leveraged buyout led by Sam Zell in December 2007.

Tribune is supported in its objection by the official creditors' committee, which is already conducting an investigation of the 2007 buyout. The committee says it already has recovered and reviewed 35,000 documents from 33 sources.

Both the committee and Tribune oppose having any one creditor conduct an investigation.

To avoid duplication and expense, the company and creditors contend it's sufficient if the indenture trustee, Law Debenture Trust Co. of New York, is given access to documents obtained by the committee.

The indenture trustee in the alternative is asking for the appointment of an examiner to conduct the investigation.

Law Debenture is indenture trustee for 18 percent of the senior notes. Deutsche Bank Trust Co. Americas, the indenture trustee for the other 82 percent, supports the motion by Law Debenture. Deutsche Bank is a member of the creditors' committee.

Tribune points out that the senior notes represent less than 10 percent of total outstanding debt.

Creditors lining up against the discovery motion include Merrill Lynch Capital Corp. and JPMorgan Chase Bank NA.

Tribune Co., the second-largest newspaper publisher in the U.S., filed under Chapter 11 in December 2008. It listed $13 billion in debt for borrowed money and assets of $7.6 billion.

Tribune Co. owns the Chicago Tribune, Los Angeles Times, six other newspapers, and 23 television stations.

The case is In re Tribune Co., 08-13141, U.S. Bankruptcy Court, District Delaware (Wilmington).