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

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According to the report, the company might fall into the hand s of a group of banks and investors thatholdse $8.6 billion in senior debt. The reporyt says that "the plan centers on a debt-for-equit swap that probably would give the senior lenders a largd majority ownership stake in thereorganized company." The plan woulf also likely wipe out a $90 million warrant that Zell hold s that would give him the right to buy 40 percent of Tribun for about $500 million. The report says that Zell'x future in the company would likely be determineed bythe group, as it is unclea r if the group would want to bring in a new or if Zell himself would want to remain with the company.
The report says that "sourced close to both the creditores and the company said it is too earlyu to make such decisions and Tribunde management continues to control the process becauses it currently has the exclusive right to proposee whatever reorganization planit wishes." Tribune through a buyout led by Zell. The deal left the companyt withnearly $12 billion in debt. Tribune has sold off asseta and cut jobs since the close of the deal to help with the debt Thecompany .