Tribune: Claims Not Valid; $20M Related To Underlying Newspaper Case Has Expired

by Tara Arick on May 30, 2013 · 0 comments

in Bankruptcy

- From LexisNexis® Mealey’s™ Daily Legal News.

The reorganized version of The Tribune Co. on May 24 filed a series of briefs objecting to assorted claims against the bankruptcy estate, most notably arguing that a $ 20 million claim asserted by the estate of Parren Mitchell, a former Maryland congressman, had expired (In Re: Tribune Company, No. 08-13141, Chapter 11, D. Del. Bkcy.).

Tribune filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware in 2008.

Newspaper Lawsuit 

The company argues that the claim filed by Keiffer Mitchell, as the representative of the estate of Parren Mitchell, in the amount of $ 20 million should be disallowed.

Parren Mitchell in 2002 sued the Baltimore Sun Co., the parent company of the Baltimore Sun newspaper – a holding of the Tribune Co. – alleging that the newspaper was liable for trespass and invasion of privacy.

The estate sued Baltimore Sun Co. in the Baltimore County, Md., Circuit Court. In 2009, the Circuit Court dismissed the lawsuit for failure to prosecute.

The estate filed its proof of claim in the Tribune bankruptcy proceeding.

11 U.S. Code Sections 502

Tribune argues that the claim has expired and cannot be revived because the case was dismissed.

Regarding other claims, Tribune filed its 68th omnibus objection to a variety of claims pursuant to 11 U.S. Code Sections 502(b) and 558, seeking to modify certain claims and disallow others.

Specifically, Tribune seeks to modify a claim asserted by Time Warner Cable and set it in the amount of $ 189,992.

Meanwhile, Tribune seeks to disallow $ 11,002.69 in claims asserted by Health Concepts/Dolphin Capital, Zvents Inc. and former employee Christopher Zanghi.

Omnibus Objection

Dolphin Capital describes itself as “a growth equity fund which invests in lower middle market companies” which entered into a business agreement with Health Concepts, a healthcare provider in South Dakota.

Zvents is an online service which claims it helps “more than 10 million monthly users find things to do in their local area, and helps thousands of event advertisers increase attendance at their events.”

Tribune argues that the claims asserted by Health Concepts/Dolphin Capital, Zvents and Zanghi should be disallowed and expunged on grounds there was no violation of Tribune’s respective contracts with those parties.

Tribune also filed briefs objecting to claims asserted by Clear Channel Outdoor Inc., in the amount of $ 326,250; and Alexis Moyer in the amount of $ 35,000.

Tribune is represented by Robert S. Brady of Young Conaway Stargatt & Taylor in Wilmington and Holly Snow of Paul Hastings in Chicago, James F. Conlan, Kenneth P. Kansa, Dennis M. Twomey and Jillian K. Ludwig of Sidley Austin in Chicago and Norman L. Pernick, J. Kate Stickles and Patrick J. Reilley of Cole Schotz Meisel Forman & Leonard in Wilmington.

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