Tribune Co. creditors are moving to force out billionaire Sam Zell as chairman of the troubled Chicago media company that owns the Los Angeles Times and KTLA Channel 5, according to a media report.

Sources told the Chicago Sun Times that creditors are working on a Chapter 11 reorganization plan that would remove Zell and sell off the company’s newspapers and broadcast stations. Investment banks and other lenders are owed $8.6 billion from Zell’s leveraged Tribune takeover in late 2007.

The Chicago Tribune first reported on the creditor discussions in June.

The company filed for Chapter 11 in December. Advertising revenue declined severely this year due to the recession, putting pressure on Tribune, which owns 12 newspapers and 23 TV stations. Most of its debt comes from the complex transaction in which the company was taken private by Zell.

“The banks will be in charge,” one insider told the Sun Times, adding that they are growing impatient with Zell’s stewardship. The bankruptcy court on Monday granted Zell extended time, until Nov. 30, to be the first to file a reorganization plan. Creditors have to wait at least that long before filing their own plan with the court.