Philadelphia Media Group Creditors Could Own Newspaper
Interesting news out of Philly today where a bankrupt publisher is in risk of losing their newspapers to one of its creditors.
Philadelphia Newspapers LLC is the owner of both the Philadelphia Inquirer and Philadelphia Daily News and like most publishers, is carrying a heavy debt load to the tune of $300 million dollars. Given their debt, the publisher is now looking for potential buyers for the two newspapers. They did have a subtle plan to sell the newspapers to a former investor, who had the potential to form a $92 million dollar cash deal, but major creditors of the Philadelphia Newspaper group took their story to court to be given the right to put up part of the money owed to them, by the publisher, to purchase the newspapers.
Yesterday, in a Bangalore court, a judge sided with the creditors claim and now the Philadelphia Newspaper group could loose its papers to very same folks their indebted to for $300 million dollars. Could something like this ever happen in Canada and what could that do to publishers like Canwest? Interesting…
Philadelphia Newspapers LLC also owns Philly.com, the widely popular Philadelphia news, information and entertainment site.
Listen to the chapter 11 message posted by Philadelphia Media Holdings CEO Brian Tierney
