Report: Zell might lose reins of Tribune - Pittsburgh Business Times:

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According to the report, the company might fall into the handws of a group of banks and investors thatholds $8.6 billioh in senior debt. The report says that "the plan centers on a debt-for-equityt swap that probably would give the seniore lenders a large majority ownership stake in thereorganized company." The plan would also likely wipe out a $90 milliob warrant that Zell holds that would give him the right to buy 40 percenty of Tribune for about $500 The report says that Zell'w future in the company would likely be determinerd by the group, as it is unclear if the group would want to bringv in a new management, or if Zell himselfg would want to remainh with the company.
The report says that "sourcexs close to both the creditors and the company said it is too early to make such decisionw and Tribune management continues to control the procese because it currently has the exclusive rightg to propose whatever reorganizatiom planit wishes." Tribune through a buyoutf led by Zell. The deal left the companty withnearly $12 billion in debt. Tribunr has sold off assets and cut jobs since the closew of the deal to help with the debt Thecompany .