With the economy the way it stands as of now even newspapers are in question. Isn't this crazy? So many people read newspapers each day and I think the Inquirer is one of the most popular. I was not that interested in reading the newspaper until last semester when I took a political science course where we had to read a paper every week. By doing this it really became interesting and I learned how important it is to know whats going on not only around you but internationally also. I hope it all works out well.
PHILADELPHIA - The fate of Philadelphia’s two biggest newspapers is being settled in court this afternoon.
Chief U.S. Bankruptcy Judge Stephen Raslavich is hearing arguments about who can bid for the assets of the Inquirer, Daily News, Philly.com and some smaller publications at an upcoming auction.
Raslavich will decide if senior lenders can bid with money owed to them by publisher Brian Tierney’s current ownership group, Philadelphia Newspapers LLC.
Philadelphia Newspapers filed for Chapter 11 bankruptcy protection in February 2009 in an effort to restructure its $390 million debt load.
If Raslavich allows such a “credit bid,” senior creditors would be able use $300 million they are owed in the auction and force Tierney out of the company, if they have the winning bid.
Tierney has put together a new investment group that has made a bid for the bankrupt company valued at $92 million.
Local investors led by Tierney bought the media company in 2006 for $515 million. But the value is now below $100 million given industry declines and the current company’s debt burden.
The senior creditors have repeatedly said they want Tierney out of the business and want any new owners to keep some debt on the company’s books.
David Haas, Bruce Toll and the Carpenters’ Union have combined with Tierney to battle the creditors who financed Tierney’s acquisition of Philadelphia Newspapers in 2006.
Senior creditors are preparing their own bid, which would keep $60 million in existing debt on the company books.
They would replace Tierney with a management team that includes former Inquirer publisher Bob Hall.
Newspaper workers signed a one-month contract extension at the end of August.
http://www.myfoxphilly.com/dpp/news/local_news/100109_Philadelphia_Newspapers_Inc_Bankruptcy
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