Report: Tribune Talks Deal To Give Creditors Control
June 8, 2009 at 8:08 AM (PT)
The CHICAGO TRIBUNE reports that its parent company TRIBUNE CO. and its creditors are negotiating a reorganization plan that would take the company out of the control of SAM ZELL and put it in the hands of a group of debtholders. The plan would swap $8.6 billion in senior debt for equity in the company.
ZELL would lose a $90 million warrant to buy 40% of the company for $500 million, plus would likely lose $250 million in a note he holds representing a loan made to the company when he bought it. The deal remains in negotiation and could change before finalization.
TRIBUNE, which is presently in Chapter 11 bankruptcy, owns Talk WGN-A/CHICAGO.