Tribune Creditors Reportedly To Seek Control

By: E&P Staff Tribune creditors are allegedly working on a plan to wrest control of the company from Chairman and CEO Sam Zell.

David Roeder of the Chicago Sun-Times reported that sources familiar with Tribune's bankruptcy said that two investment banks owed $8.6 billion are drafting up a reorganization plan that could allow them to sell the company's newspaper and broadcast assets.

Staggering under some $13 billion in debt, Tribune declared Chapter 11 at the end of last year. The company asked for and received an extension to present a reorganization plan on Nov. 30. Any plan put forth by creditors would have to happen after that date.

Tribune Senior Vice President of Corporate Relations told the Roeder, "Since going private, we have re-engineered many of our existing products and introduced new ones, expanded our local news programming, dramatically reduced our expenses and positioned the company to succeed in the face of an extremely difficult ad environment and a worsening economy."

Creditors involved in other newspaper bankruptcy proceedings, including, Philadelphia Newspapers and Creative Loafing , are putting up their own reorganization plans.