Owners of Philly Papers Appeal Key Bankruptcy Ruling to Maintain Control

By: The owners of The Philadelphia Inquirer and Philadelphia Daily News are appealing a bankruptcy court ruling that would likely give the company to creditors.

A bankruptcy judge ruled last week that senior lenders can use the $300 million they're owed to bid on the company at a planned auction.

Philadelphia Newspapers filed a motion Tuesday asking a district judge to review that decision. They hope to keep locals in control through cash-only bidding.

Local investors bought the company in 2006 for $515 million and filed for bankruptcy this year. The company is now worth $100 million or less.

Senior creditors include the Royal Bank of Scotland Group PLC, CIT Group Inc. and Angelo, Gordon & Co.

No date has been set for the auction


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