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.