Bankrupt Philly papers seek hearing delay

April 3, 2009 8:57:54 AM PDT
Philadelphia Newspapers wants to again delay a hearing on interim financing that could decide who controls the company. Owners of The Philadelphia Inquirer and Philadelphia Daily News says they are doing well enough financially to delay a mid-April hearing until May 11.

Senior lenders have agreed to previous delays during negotiations, but oppose the latest request.

A judge has scheduled a hearing Monday on the issue. Housing mogul Bruce Toll and other investors have offered $25 million in temporary financing, but only if Chief Executive Brian Tierney stays on. Creditors oppose that condition and have offered their own $20 million financing plan.

The company filed for Chapter Eleven bankruptcy in February, citing $395 million in debt.

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