New era as Philly newspapers now owned by lenders

AP News
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Posted: Oct 08, 2010 4:08 PM
New era as Philly newspapers now owned by lenders

The Philadelphia Inquirer and Daily News are starting a new era under the control of their former creditors.

The lenders include the hedge fund Angelo, Gordon & Co., which also has stakes in several other U.S. newspapers.

The creditors posted $105 million in cash Friday to buy the company, ending a bitter 20-month bankruptcy fight with former owners. They are effectively paying themselves some of the $318 million they lent local investors in 2006.

The purchase is valued at about $139 million, including the headquarters building.

Inquirer Editor William Marimow will return to investigative reporting. Other management changes are expected.

Incoming Publisher Greg Osberg, a former Newsweek executive, has pledged to reinvigorate the company's Philly.com website.