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Meet the new CEO of Tribune Co., owner — and possible soon a seller — of the L.A. Times.
Tribune Co. emerged from bankruptcy last year owned by a bank, JP Morgan, and private equity investors from Los Angeles-based Oaktree Capital Management. Now it's going to be run by an executive whose most recent job was at the giant private equity firm the Carlyle Group. Peter Liguori landed there for a stint after serving as the Chief Operating Officer at Discovery Communications.
Last year, the bankers and private-equity guys who now control the company started to talking to yet more bankers about possibly selling Tribune Co.'s newspapers, which include the Los Angeles Times and Chicago Tribune, as well as local TV station KTLA.
In an interview with the L.A. Times published Thursday, Liguori said that he's isn't interested in selling, say...the L.A. Times for a "fire sale" price. And then he said some other things:
The Los Angeles Times building. L.A. billionaire Eli Broad is once against interested in buying the struggling newspaper.
Yep, it could be Broad versus Brodsky for the future of the L.A. Times, which is currently embroiled in the never-ending Tribune Co. bankruptcy. The L.A. billionaire philanthropist against the bankruptcy lawyer turned hedge-fund CEO.
Brodsky's Aurelius Capital Management, based in New York, is fighting hard for its piece of Tribune's liabilities, basically forcing the company's senior creditors, including Oaktree Capital Management, to delay their hopes that they could get the viable parts of the media giant out of Chapter 11, leaving the junior creditors to tussle over the scraps. But Brodsky doesn't play that game, and he's no stranger to pressing his case and pressing it hard.
This can create some controversy. During the bankruptcy of what was left of Washington Mutual after the FDIC sold its banking business to JP Morgan Chase in 2008, Aurelius was accused by a single shareholder of insider trading because the hedge fund, along with three others, wouldn't back a reorganization plan. However, the bankruptcy judge eventually decided to "vacate" a ruling that would have enabled the shareholders to sue the hedge funds, effectively erasing the accusation from the legal record.