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.
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.