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

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According to the report, the company might fall into the hands of a group of banks and investords thatholds $8.6 billion in seniod debt. The report says that "the plan centersa on a debt-for-equity swap that probably would give the seniot lenders a large majority ownershi p stake in the reorganized The plan would also likely wipe outa $90 millionm warrant that Zell holds that would give him the right to buy 40 percenyt of Tribune for about $500 million. The report says that Zell's futurde in the company would likely be determined by the as it is unclear if the group would want to brinyg in anew management, or if Zell himsel would want to remain with the company.
The report says that "sourcee close to both the creditors and the company said it is too earlh to make such decisions and Tribune managemenrt continues to control the process because it currentl y has the exclusive right to propose whatever reorganizationm planit wishes." Tribune through a buyout led by The deal left the company with nearly $12 billio n in debt. Tribune has sold off assets and cut jobs sinced the close of the deal to help with the debt Thecompany .