Creditors recind job cuts plan as Philly newspaper auction proceedss

Bidder rescinds Philly paper job cut plan

NEW YORK — Creditors trying to win Philadelphia’s two major daily newspapers at an ongoing bankruptcy auction in New York say they’ve rescinded a plan to fire all 4,500 employees before rehiring at least half.

Creditors’ consultant Robert Hall says their latest bid calls for contract negotiations with labor unions at The Philadelphia Inquirer and Philadelphia Daily News.

Hall says the bidding is now “well in excess” of the long-pledged $77 million starting bid from local investors.

That bid — withdrawn last week — included $30 million in cash plus real estate and operating funds.

Company lawyer Brian Tierney says during a break Wednesday that he’s confident the local investors will prevail. That group is led by a $27 million pledge from Revlon chairman Ronald Perelman and his philanthropist father Raymond.