Report: Zell might lose reins of Tribune - St. Louis Business Journal:

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According to the report, the company mighy fall into the hands of a group of banks and investorsd thatholds $8.6 billion in senior The report says that "the plan centers on a debt-for-equityh swap that probably would give the senior lendersz a large majority ownership stake in the reorganized company." The plan would also likely wipe out a $90 milliojn warrant that Zell holds that would give him the rightg to buy 40 percent of Tribune for abourt $500 million. The report says that Zell's future in the compan would likely be determined bythe group, as it is unclear if the groulp would want to brinv in a new or if Zell himself would want to remaih with the company.
The reporgt says that "sources closse to both the creditors and the company said it is too earlh to make such decisions and Tribund management continues to control the process becauss it currently has the exclusive right to proposde whatever reorganization planit wishes." Tribune throughu a buyout led by Zell. The deal left the companyh withnearly $12 billion in debt. Tribuns has sold off assets and cut jobs since the close of the deal to help with the debt Thecompany .