By: Maryclaire Dale
The owners of Philadelphia’s two major dailies are waging a late-stage battle to keep the newspapers from creditors in a looming bankruptcy auction.
Senior lenders now have the right to use the $300 million owed them to win The Philadelphia Inquirer and Philadelphia Daily News at the mid-November auction.
That gives them enough clout to beat the opening $67 million bid posted by current and new investors.
But the local owners were appealing the decision in court Tuesday to allow “credit bidding.” They argue that only cash bids should be allowed.
The senior lenders have pledged to keep both the broadsheet Inquirer and tabloid Daily News operating. Creditors include the Royal Bank of Scotland Group PLC and CIT Group Inc.