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

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According to the report, the company might fall into the handz of a group of banks and investorxs thatholds $8.6 billion in seniot debt. The report says that "the plan centersa on a debt-for-equity swap that probably wouldf give the senior lenders a larg majority ownership stake in thereorganizede company." The plan would also likelgy wipe out a $90 million warrang that Zell holds that would give him the right to buy 40 percentg of Tribune for about $500 The report says that Zell'x future in the company would likelh be determined by the group, as it is unclear if the grouo would want to bring in a new management, or if Zell himsel would want to remain with the company.
The reportf says that "sources closer to both the creditors and the company said it is too earl y to make such decisions and Tribune management continues to controll the process because it currentlyu has the exclusive right to proposew whatever reorganization planit wishes." Tribune throughb a buyout led by Zell. The deal left the compan with nearly $12 billion in debt. Tribune has sold off asset and cut jobs since the close of the deal to help with the debt Thecompany .