Enron Sues Media Firms Over Newsprint
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Enron Corp. is suing Tribune Co. and Knight Ridder Inc. for more than $31 million, alleging that the media giants defaulted on contracts related to the price of newsprint.
Both companies terminated multiyear agreements early, the lawsuit alleges, and therefore must pay termination fees plus amounts equal to the estimated remaining value of the contracts, based on current newsprint prices.
Enron said that Chicago-based Tribune owes $22.9 million and that San Jose-based Knight Ridder owes $8.7 million.
The media companies stopped making payments shortly after Enron revealed questionable accounting practices and filed for bankruptcy protection in December.
Knight Ridder did not return a call seeking comment. A spokesman for Enron said the company would not comment on the lawsuits. A spokeswoman for Tribune, owner of The Times, said the company does not comment on pending litigation.
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