Creditors buy Philadelphia papers at auction
After almost 30 hours of negotiations, creditors of the bankrupt owner of the Philadelphia Inquirer and Philadelphia Daily News beat a group led by billionaire Ronald Perelman to buy the publisher for $139 million, Bloomberg reports. The sale must still be approved by a federal bankruptcy court judge. See the Inquirer’s and Daily News' own stories, and reports by Reuters.
Publisher Brian Tierney fought to retain local control of the papers, with the support of the Perelman business and philanthropy, the Associated Press says. The new owners, who include hedge funds and banks, will install their own CEO and have said they will negotiate, rather than try to oust, the labor union, which represents most of the papers’ 2,000 full-time and and 2,500 part-time employees. See other stories. The sale also includes Philly.com, which reports this reaction to the sale.