WILMINGTON, Delaware (Reuters) - The bankrupt publisher of The Chicago Tribune and Los Angeles Times said yesterday it reached an agreement with two hedge funds that would clear the way for it to end nearly two years in Chapter 11.

The Tribune Co's bankruptcy has been mired in a battle among creditors over who is to blame for the company's 2008 failure, which came less than year after real estate developer Sam Zell completed a deal to take control of the company using piles of debt.

Tribune said in a statement it agreed with Oaktree Capital Management and Angelo, Gordon & Co LP on a plan of reorganisation that would leave the two hedge funds with significant ownership stakes in the company.

The plan also would allow Tribune, which also owns nearly two dozen television stations, to exit bankruptcy before resolving a complex web of legal claims.

The deal would need approval of Delaware's bankruptcy court.

Tribune's statement only mentioned the support of the two funds, although the mediator who oversaw the talks among creditors indicated he hoped for broader backing.