Lenders bid $105M for Philadelphia Inquirer, Daily News to top Perelman’s opening bid of $50M

Lenders bid $105M for Philly newspapers

PHILADELPHIA — Creditors have posted an opening bid of $105 million in cash for The Philadelphia Inquirer and Philadelphia Daily News, more than twice the $50 million opening bid of philanthropist Raymond Perelman.

The two parties are vying for control of the newspapers in a bankruptcy auction.

Perelman now has a chance to top the creditors’ opening bid.

The 93-year-old Perelman says he hopes to protect the integrity of the newspapers.

The creditors cash bid equals their winning bid in a spring auction. That bid consisted of $105 million cash plus closing and other costs for a total bid of $139 million. But creditors failed to close on that sale, prompting the need for Thursday’s auction.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

PHILADELPHIA (AP) — A bankruptcy court showdown looms Thursday as philanthropist Raymond Perelman competes with lenders at an auction for Philadelphia’s two largest newspapers.

The 93-year-old Perelman says he hopes to protect the integrity of The Philadelphia Inquirer and Philadelphia Daily News by keeping them in local hands.

The creditors are led by hedge funds and banks trying to recoup some of their investment. The group includes Angelo Gordon, which owns stakes in newspapers in Chicago, Los Angeles and other U.S. cities.

The two parties are the only players to submit minimum $50 million bids by Wednesday’s deadline. The auction is set to start Thursday morning.

Creditors won an earlier auction for $139 million, but failed to close over a contract dispute with unionized drivers.