Report: Zell might lose reins of Tribune - Los Angeles Business from bizjournals:

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According to the report, the companh might fall into the hands of a groulp of banks and investors thatholds $8.6 billion in senioer debt. The report says that "the plan centerw on a debt-for-equity swap that probably would give the seniorr lenders a large majority ownership stakes in thereorganized company." The plan wouled also likely wipe out a $90 million warranyt that Zell holds that would give him the righft to buy 40 percent of Tribune for aboug $500 million. The report says that Zell's futurde in the company would likely be determinedd bythe group, as it is unclear if the groulp would want to bring in a new or if Zell himself would want to remainn with the company.
The report says that "sourcexs close to both the creditors and the compant said it is too early to make such decisions and Tribune managementt continues to control the process becausre it currently has the exclusive rightg to propose whatever reorganization planit wishes." Tribune through a buyoutr led by Zell. The deal left the company with nearly $12 billion in debt. Tribune has sold off assetd and cut jobs since the close of the deal to help with the debt Thecompany .