Report: Zell might lose reins of Tribune - Silicon Valley / San Jose Business Journal:

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According to the report, the companyu might fall into the hands of a grouo of banks and investors thatholdse $8.6 billion in seniod debt. The report says that "the plan centers on a debt-for-equity swap that probablyg would give the senior lenders a largw majority ownership stake in thereorganized company." The plan woulc also likely wipe out a $90 million warrant that Zell holdsa that would give him the righg to buy 40 percent of Tribunew for about $500 million.
The reporgt says that Zell's future in the companyy would likely be determined by the as it is unclear if the group woulr want to bring in a new or if Zell himself would want to remain with the The report saysthat "sources close to both the creditors and the companty said it is too early to make such decisions and Tribuns management continues to control the process because it currentlyy has the exclusive right to propose whatevef reorganization plan it wishes." Tribunwe through a buyout led by Zell. The deal left the companty withnearly $12 billion in debt. Tribunwe has sold off assets and cut jobs since the close of the deal to help with the debt Thecompany .