Tribune Reorganization Not Supported by US Tax Officials

The plans of reorganization proposed by Tribune are not getting enough backing from the US tax officials. These officials are refusing to support the proposal, as they say that this will obstruct the collection of potential taxes from the bankrupt newspaper.

For opposing the action, the Internal Revenue Service filed an objection in the U.S. Bankruptcy Court in Wilmington, Delaware. In this filing it was said that the US Labor Department is looking into the tax association regarding the $8.3 billion buyout.

On the other hand, the Bankruptcy examiner Kenneth N. Klee came up with a conclusion that a fraudulent transfer took place in the second part of the two parts by the billionaire Sam Zell, who took over the newspaper and the television Company.

Following this overtake, Tribune filed for bankruptcy in December 2008. There have been speculations that Klee’s report will affect the poll regarding the reorganization of Tribune.

Explaining the problem further, the US Government Attorneys said in a written statement that if the case finds out that Tribune had to pay taxes linked to the takeover, the IRS will then not be allowed to collect the same as per the conditions of the plan proposed by Tribune.

There have been reports that even the creditors are not in-line on this topic. Some of the creditors are opining that the charges regarding the buyout and related things should not be solved.