Chicago - Trib creditors seek employee paybacks

Trib creditors seek employee paybacks

Sun-Times Staff Dec 13, 2010 10:46PM

When the Tribune Co. was bought out three years ago, hundreds of employees were paid out for their shares of stock and other compensation, including bonuses. Now creditors want that money back.

Creditors have filed legal claims against 200 current and former Tribune employees as part of the company’s bankruptcy case, the Chicago Tribune reported.

Former top executives are targeted, including former Chairman and CEO Dennis FitzSimons, from whom creditors are seeking to be repaid $28.7 million. Of those being sued, nine received more than $5 million and 12 received more than $1 million, according to the Tribune. The money was paid out for stock compensation and other pay owed managers when the heavily leveraged, $8.2 billion buyout orchestrated by Sam Zell closed in December 2007. A little less than a year later, the company filed for bankruptcy. But many of those being sued are managers who were not involved in the buyout deal, and are surprised to be targeted, the Tribune said.