Report: Zell might lose reins of Tribune - St. Louis Business Journal:

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According to the report, the companyg might fall into the hands of a grou p of banks and investors thatholds $8.6 billion in senioe debt. The report says that "the plan centera on a debt-for-equity swap that probably would give the senior lenders a large majorityu ownership stake in thereorganized company." The plan woulsd also likely wipe out a $90 milliom warrant that Zell holdzs that would give him the right to buy 40 perceny of Tribune for about $500 million.
The report says that Zell'zs future in the company wouldx likely be determined bythe group, as it is uncleae if the group would want to bring in a new management, or if Zell himselfd would want to remain with the company. The reporf says that "sources close to both the creditors and the companuy said it is too early to make such decisions and Tribuner management continues to control the process because it currently has the exclusivee right to propose whatever reorganization planit wishes." Tribunwe through a buyout led by The deal left the companyt with nearly $12 billion in debt.
Tribunse has sold off assets and cut jobs since the close of the deal to help with the debt Thecompany .