August 21, 2009
Philly newspapers file reorganization plan
Secured creditors would get 21 cents on the dollar under a reorganization plan for Philadelphia's two bankrupt daily newspapers, a court filing shows.
The deal, which requires court approval, would give the creditors of Philadelphia Media Holdings LLC $66 million in cash and property for their $318 million debt, the Philadelphia Daily News reported Friday.The plan includes a $35 million investment and a guaranteed $17 million line of credit from housing developer and automobile dealer Bruce Toll, the Carpenters Union pension fund and Penn Matrix Investments.
We're the only place in America which has been able to get new equity into a newspaper business, said Brian P. Tierney, chief executive officer of Philadelphia Media Holdings.
Tierney said The Philadelphia Inquirer, the Daily News and the Web site Philly.com were forecast to earn $10 million to $11 million this year.
Creditors said they had yet to form an opinion of the proposal, the Daily News said.