(Updates with excerpt from judge’s order in third paragraph.)
Oct. 20 (Bloomberg) -- Tribune Co., the biggest media company in bankruptcy, won a judge’s approval to pay the U.S. Internal Revenue Service $7 million to settle claims it violated U.S. tax law.
The IRS originally sought $37.5 million in unpaid taxes related to its almost $13 billion leveraged buyout in 2007, according to court papers.
The agreement appears to be “in the best interests” of Tribune and its creditors, U.S. Bankruptcy Judge Kevin J. Carey wrote in an order signed yesterday in Wilmington, Delaware.
Chicago-based Tribune filed for bankruptcy in 2008, one year after billionaire Sam Zell led a buyout that added more than $8 billion in debt to the company. Tribune owns the Los Angeles Times, the Chicago Tribune, and TV and radio stations.
The bankruptcy case is In re Tribune Co., 08-bk-13141, U.S. Bankruptcy Court, District of Delaware (Wilmington).
--With assistance from Steven Church in Wilmington, Delaware. Editors: Andrew Dunn, Glenn Holdcraft
To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at firstname.lastname@example.org
To contact the editor responsible for this story: John Pickering at email@example.com