Court: Philly newspaper owners can deny creditors right to use money owed them to make bid

Philly newspaper creditors can’t bid with credit

PHILADELPHIA — A federal appeals court says the owners of Philadelphia’s two major daily newspapers can deny creditors the right to use the $300 million owed them to make a bid at an upcoming bankruptcy auction.

The split 2-1 decision issued Monday upholds a lower court decision in the hard-fought tussle for control of The Philadelphia Inquirer and Philadelphia Daily News.