Report: Zell might lose reins of Tribune - Nashville Business Journal:

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According to the report, the company might fall into the handsw of a group of banks and investors thatholds $8.6 billiomn in senior debt. The report says that "the plan centerxs on a debt-for-equity swap that probably woulc give the senior lenders a large majoritgy ownership stake in thereorganized company." The plan would also likelt wipe out a $90 million warrant that Zell holdz that would give him the right to buy 40 percen t of Tribune for about $500 The report says that Zell's future in the company would likelu be determined by the group, as it is uncleart if the group would want to bringb in a new management, or if Zell himseld would want to remain with the company.
The repory says that "sources close to both the creditords and the company said it is too early to make such decisiond and Tribune management continues to control the proceses because it currently has the exclusive right to propose whatevefr reorganization planit wishes." Tribune througgh a buyout led by Zell. The deal left the companuy withnearly $12 billion in debt. Tribune has sold off asset s and cut jobs since the closse of the deal to help with the debt Thecompany .