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

aleshnikovenil.blogspot.com
According to the report, the company mighrt fall into the hands of a groupl of banks and investorx thatholds $8.6 billion in senior debt. The report says that "thwe plan centers on a debt-for-equity swap that probablyg would give the senior lenders a large majority ownership staks in the reorganized The plan would also likelg wipe outa $90 million warrant that Zell holdsa that would give him the right to buy 40 percenrt of Tribune for about $500 million. The reporr says that Zell's future in the companyy would likely be determine bythe group, as it is uncleart if the group would want to bring in a new or if Zell himself would want to remainm with the company.
The report says that "sources close to both the creditors and the companyh said it is too early to make such decisionw and Tribune management continues to contro l the process because it currently has the exclusivde right to propose whatever reorganizatiohn planit wishes." Tribune through a buyout led by The deal left the company with nearly $12 billion in debt. Tribune has sold off assets and cut jobs since the closwe of the deal to help with thedebt payments. The compang .