Could the Sale of the Cubs Cause a Snag in Zell Buying Trib?

[vance_the_cubs_fan]

Saw this as I was perusing online today.

 

I really don't know what it means, but here's a short blurb.

 

Tribune already bought back 126 million shares, or 52% of the company, on June 5, as part of Zell's strategy. But a major hurdle remains between Zell and his second round of his efforts to acquire Tribune's assets, which include 11 newspapers such as the Chicago Tribune and Los Angeles Times, in addition to 23 television networks and various Web sites.

 

Namely, three hedge funds that hold about $690 million of the company's 2% coupon convertible debt are claiming that Zell's intention to sell the Chicago Cubs baseball team, owned by Tribune since 1981, would violate covenants in the bond offering.

 

While Zell and Tribune have defended their actions to sell the Cubs, debtholders have had recent success in demanding more money from motivated buyers in recent LBOs

[Amazing_Grace]

Awesome, a court battle is just what we need to prolong the sale process and further guarantee that the Cubs will do nothing in the offseason.