Trib gets break on legal fees

Although Tribune Co. is the second- largest newspaper publisher in the U.S., its bankruptcy lawyers can't charge the highest fees in the country, U.S. Bankruptcy Judge Kevin Cary ruled at a hearing Feb. 20.

Lawyers for Tribune from Chicago-based Sidley Austin LLP wanted hourly rates up to $1,100, the highest ever sought for representing a company in bankruptcy reorganization.

Cary said he won't allow Sidley lawyers to charge more than $925. If anyone wants $1,000 or more, Cary said he will demand there be a hearing where the lawyer must produce evidence showing he or she is worth it. To read Bloomberg coverage on the hearing, click here.

Cary didn't issue a ruling yesterday on whether Lazard Freres & Co. may serve as a financial adviser for Tribune. The U.S. Trustee objected, saying there is a conflict of interest because Lazard also advises Sun-Times Media Group Inc., the chief competitor in Chicago. The dispute was put off until a hearing next month.

Tribune filed under Chapter 11 in December after being acquired in December 2007 in a $13.8 billion leveraged buyout led by Sam Zell. It listed $13 billion in debt for borrowed money and assets of $7.6 billion. Tribune owns the Chicago Tribune, Los Angeles Times, six other newspapers and 23 television stations in addition to the Chicago Cubs professional baseball team and Wrigley Field in Chicago where the team plays. Neither the team nor the field is in bankruptcy.

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