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WEDNESDAY, NOVEMBER 25, 2009
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 ANALYSIS 
3

Lenders, Not Zell, May Run Tribune Co.

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(Newser) – The bankrupt Tribune Company could emerge from protection with its top creditors—and not chairman Sam Zell—in charge, the Chicago Tribune reports. Zell exerts control based on $90 million he spent to secure the option of buying 40% of the company for $500 million, and a $250 million loan. Those numbers pale in comparison to the $8.6 billion Tribune owes lenders with first dibs on assets.

Those creditors include JPMorgan and Citigroup; in all, the company owes $13 billion. “It completely depends on whether the new owners see value in keeping Zell,” an expert said of expected restructuring. “They have to decide: Is the person at the helm when the company went into the storm the most able person to steer it out?” Zell made an $8.2 billion deal in 2007 to take the company private.

An empty Chicago Sun Times newspaper box sits under rival Chicago Tribune's box in downtown Chicago.
An empty Chicago Sun Times newspaper box sits under rival Chicago Tribune's box in downtown Chicago.   (AP Photo)
Billionaire real-estate investor Sam Zell.
Billionaire real-estate investor Sam Zell.   (AP Photo)
The Chicago Tribune Tower in Chicago.
The Chicago Tribune Tower in Chicago.   (AP Photo)
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3 comments
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justme
Jun 8, 09 2:40 PM CDT
Obama must have missed this one. He seems to want thr government to run everything. Reply
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IN RESPONSE:
Robert_Dada
Jun 8, 09 3:27 PM CDT
If he wanted the government to run everything, why didn't he put the troubled banks into receivership instead of a government infusion of capital?
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SPH
Jun 8, 09 6:56 PM CDT
No matter...The Cubs will continue to be losers...... Reply
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