By: E&P Staff
The auction of the Philadelphia Inquirer and Philadelphia Daily News will go on as scheduled April 27 after a three-judge federal appeals court panel rejected a delay requested by the papers? biggest lenders.
The judges acted after Brian Tierney, CEO of the papers owners, Philadelphia Media Holdings, told a news conference that the company was running out of cash.
“If it’s delayed even a week or two, there’s a fear we’re going to run out of cash and there’s a fear that this 181-year-old company will suffer because of the delay,” Tierney said, according to an account in the Daily News by Bob Warner and Will Bunch.
The panel ruled 2-1 Wednesday against allowing a stay of the auction while the full U.S. Court of Appeals for the Third Circuit decides whether to review an earlier decision by the panel rejecting ?credit bidding? for the papers by the senior lenders, who hold debt valued at $318 million.
In credit bidding, the senior lenders, who hold more than half the newspapers? debt, could use that debt to bid for them. If the appeals court ruling sticks, the lenders will have to bid cash for the newspapers.