Judge delays auction for Philly newspapers 1 week

AP News
Posted: Nov 12, 2009 7:25 PM

The bankruptcy auction for The Philadelphia Inquirer and Philadelphia Daily News is on hold one week while creditors appeal a key bid rule.

The auction to determine the next owner of the two major dailies had been set for next week.

The current owners are in bankruptcy trying to shed $400 million in debt. Some original investors are among the local group posting an auction bid of $37 million.

The bid, along with the $30 million headquarters building, would give senior lenders 22 cents on the dollar.

Creditors want to use the millions owed them to bid on the company. But company officials are pushing for only cash bids to keep locals at the helm.

The issue is likely headed for a showdown in the 3rd U.S. Circuit Court of Appeals.