Philly newspaper creditors seek control

PHILADELPHIA (AP) - October 1, 2009

Philadelphia Newspapers operates The Philadelphia Inquirer, Philadelphia Daily News and the Web site.

Local investors bought the company three years ago but have struggled amid the industry-wide collapse.

The senior lenders are competing in the bankruptcy auction with a $67 million bid by a mix of current and new investors. Their bid includes $37 million in cash plus the headquarters building and parking lot.

That's a fraction of the company's $515 million sale price in early 2006.

Creditors will argue Thursday for the right to "credit bid," using some of the money owed them.

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