Tribune Co. Could Emerge From Bankruptcy Soon; Zell May Stay On

By Andrew Gauthier 

The New York Times

The Tribune Company could well emerge from bankruptcy this fall with much of its current top management intact, according to people briefed on restructuring plans, but it remains unclear whether that might include the top dog himself, Samuel Zell, the chairman and chief executive who took the company private.

From the day Tribune filed for bankruptcy in December, it has been clear that Mr. Zell’s $315 million investment and warrants to buy a large share of the company would almost certainly be wiped out. He is being sued on multiple fronts over the $8.2 billion deal that took the company private in December 2007; he has called it a mistake and “the deal from hell”; and some people familiar with the plans are guessing that, when the dust settles, he will be out.

But other people close to the restructuring talks, speaking anonymously because the discussions were supposed to remain private, caution that the major creditors have not yet given a clear indication whether they want Mr. Zell to leave or remain in some capacity. More…

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