Judge OKs $139M Court Sale Of Philly Newspapers
From Ben Bowens
PHILADELPHIA (AP) - A judge quietly approved the bankruptcy sale of Philadelphia’s two largest newspapers to creditors on Thursday, nearly closing a bitter and often chaotic 20-month battle for control of the company.
The sale of The Philadelphia Inquirer and Philadelphia Daily News is valued at about $139 million, including $105 million cash and the iconic newspaper building.
The senior lenders are essentially paying themselves. All of the approximately 30 banks and hedge funds holding the company’s secured debt will now retain ownership shares, including the hedge fund Angelo, Gordon & Co., which has stakes in newspapers in Los Angeles, Chicago, Minneapolis and other U.S. cities.
Creditors plan to close the sale by Oct. 8. They could close sooner if they can negotiate contract terms with holdout drivers, who derailed the scheduled sale last month.
“We look forward to operating the company out of bankruptcy, revitalizing the Inquirer and Daily News, and building the most successful regional portal in the country,” said incoming Publisher Greg Osberg, referencing the company’s Philly.com website.
For full story go to: http://philadelphia.cbslocal.com/
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