Creditors hope to make a "credit bid" with money owed them to win The Philadelphia Inquirer and Philadelphia Daily News at next month's bankruptcy auction. They are owed $400 million.
A hearing on the issue has been postponed until Monday amid negotiations.
Local investors bought Philadelphia Newspapers LLC in 2006 for $515 million. But the value is now below $100 million given industry declines.
A group of new and old investors has bid $67 million in cash and property. They include housing company co-founder Bruce Toll and Rohm & Haas heir David Haas.
The local group would keep Chief Executive Brian Tierney, while creditors would replace him.
By: A key bankruptcy issue that could determine the next owner of Philadelphia's two main daily newspapers won't be resolved Tuesday after all.