Philadelphia Newspapers Can Hire Special Counsel in Alleged Taping Case

Posted Thursday, June 11, 2009 12:00 am

By: A federal judge says the company that owns Philadelphia's two largest daily newspapers and Philly.com can hire special counsel to represent it in the investigation of an unauthorized recording.

At issue is the Nov. 17 taping of a sensitive meeting between Philadelphia Newspapers L.L.C. and its creditors by Vincent DeVito, an executive with CIT Group Inc., a key lender. Philadelphia Newspapers says the taping soured the pre-bankruptcy negotiations.

The creditor group was ordered in April by U.S. Bankruptcy Judge Jean FitzSimon to investigate the recording.

Attorneys for the publisher and a group of creditors disagree about the precise meaning of the latest order regarding just what the special counsel will be permitted to do.

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Philadelphia Newspapers Can Hire Special Counsel in Alleged Taping Case

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