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Philly Newspapers get bankruptcy plan extension

June 16, 2009 9:23:47 AM PDT
A judge is giving Philadelphia Newspapers another three months to file a bankruptcy reorganization plan. The extension keeps CEO Brian Tierney and other executives in control of The Philadelphia Inquirer and Philadelphia Daily News.

Creditors owed nearly $400 million object to the extension. They say the company has not been negotiating seriously since the February bankruptcy filing.

At a hearing Tuesday, Vice President Richard Thayer says the company hopes to raise $50 million to emerge from bankruptcy, about half from insiders who put up $150 million toward the $515 million purchase in 2006.

Thayer says the company does not plan to start labor negotiations until after the reorganization plan is filed. Several union contracts expire Aug. 31.

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