Reports have revealed that Tribune CO. has detailed its plans to cede control of the firm to its lenders, as the newspaper-and-television firm tries its best to end its 16 long months in bankruptcy court.

On Thursday, Tribune confirmed that it has now agreed to settle a debt-holder lawsuit that had managed to hold up its efforts to emerge out of bankruptcy court. The company said that the settlement was given approval by lenders as well, which include JP Morgan Chase & Co. and investment companies like Angelo Gordon & Co. and Centerbridge Partners LP.

The settlement suggests that the creditors have pretty much agreed to cutback a substantial amount of the $13 Billion debt held by Tribune. In return for this, under the plan shared by the company, the lenders would end up gaining ownership of the media firm, holdings of which include major names like Chicago Tribune, the Los Angeles Times and the Orlando Sentinel, in addition to a string of local-TV stations.

Tribune has shared that it is now expecting its largest debt-holders, led essentially by JP Morgan and Angelo Gordon, to receive cash, new debt and stock which would represent over 91% of the equity held by the restructured company. Smaller percentages would be received by the other lenders.