Bankruptcy judge must resolve Philly papers’ pension fight before approving sale to creditors
By APMonday, June 28, 2010
Judge to weigh Philly papers’ pension dispute
PHILADELPHIA — A federal judge must resolve a dispute over pension funds before he can approve the sale of Philadelphia’s two major newspapers.
The creditors who bought The Philadelphia Inquirer and the Philadelphia Daily News at a bankruptcy auction say they did not assume liability for employee pension plans.
Attorneys for the plans contend there is an estimated $150 million “withdrawal liability” for ending contributions.
Chief U.S. Bankruptcy Judge Stephen Raslavich must approve the creditors’ reorganization plan before the sale can close. He indicated the three-day hearing would end Monday.
Local investors purchased the papers in 2006 for $515 million, but ran aground amid industrywide revenue declines. The creditors bought the papers for $139 million.
