Former directors and the current chief executive of Orange County Register parent Freedom Communications Inc. are being sued for issues related to the Irvine-based company’s recent bankruptcy.
The lawsuit, filed in Orange County Superior Court, seeks $180 million in damages on behalf of unsecured creditors in Freedom’s bankruptcy.
The litigation was expected. In January, Freedom reworked its bankruptcy reorganization to allow unsecured creditors to sue.
The company’s reorganization turned over ownership of the company to bond holders and investors that acquired Freedom debt during bankruptcy in exchange for forgiving about $445 million in debt.
Daniel Callahan, of Santa Ana’s Callahan & Blaine, is leading the litigation, which names former directors replaced during the bankruptcy and interim Chief Executive Burl Osborne.
The litigation seeks to collect damages from Freedom’s insurance policy covering executives and directors.
