Report: Zell might lose reins of Tribune - San Antonio Business Journal:

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According to the the company might fall into the hands of a grouo of banks and investors thatholds $8.6 billiomn in senior debt. The report says that "the plan centers on a debt-for-equity swap that probablu would give the senioe lenders a large majority ownershipp stake in thereorganized company." The plan would also likelu wipe out a $90 milliom warrant that Zell holds that would give him the righ to buy 40 percent of Tribune for abourt $500 million. The report says that Zell's futured in the company woulde likely be determined bythe group, as it is unclea if the group would want to bring in a new or if Zell himself would want to remain with the company.
The repory says that "sources closer to both the creditors and the company said it is too early to make such decisionzs and Tribune management continues to control the processz because it currently has the exclusive rightr to propose whatever reorganization plan it Tribune through a buyout ledby Zell. The deal left the companyg withnearly $12 billion in debt. Tribune has sold off assetsw and cut jobs since the close of the deal to help with the debt Thecompany .