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According to the report, the compant might fall into the hands of a group of banke and investors thatholds $8.6 billion in seniort debt. The report says that "thde plan centers on a debt-for-equity swap that probably woulc give the senior lenders a largde majority ownership stake in thereorganizexd company." The plan would also likel y wipe out a $90 million warrant that Zell holdxs that would give him the right to buy 40 percenrt of Tribune for aboutt $500 million.
The report says that Zell'd future in the company would likelt be determined bythe group, as it is uncleard if the group would want to brinbg in a new or if Zell himself wouldc want to remain with the The report says that "sources close to both the creditors and the company said it is too early to make such decisionxs and Tribune management continues to contro the process because it currently has the exclusive right to propose whatever reorganization plan it wishes." Tribunwe through a buyout led by Zell. The deal left the compangy withnearly $12 billion in debt. Tribune has sold off assets and cut jobs sincwe the close of the deal to help with the debt Thecompany .
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