Philly newspaper creditors seek to delay April 27 auction while they appeal bid rules
By APWednesday, April 7, 2010
Philly newspaper creditors want auction delayed
PHILADELPHIA — Creditors hoping to take over Philadelphia’s two largest newspapers want to delay a scheduled bankruptcy auction this month while they appeal a key bidding issue.
Secured creditors want the full 3rd U.S. Circuit Court of Appeals to consider whether they can bid with some of the $300 million owed them by owners of The Philadelphia Inquirer and Philadelphia Daily News.
A bankruptcy judge says he will proceed with the April 27 auction unless the appeals court grants the delay.
A 3rd Circuit panel issued a split 2-1 decision last month that said the newspaper owners can demand cash bids at the auction and refuse to let creditors bid with credit.
The senior lenders now want all 13 circuit judges to hear their appeal.
