Six hedge funds do not have to disclose how much they paid for most of the secured debt of Philadelphia’s two daily newspapers.
A federal bankruptcy judge in Philadelphia denied a bid by the owners of the bankrupt Philadelphia Inquirer and Philadelphia Daily News to learn how much “the Steering Group of Prepetition Secured Lenders” paid for their roughly $179 million in debt in advance of an auction of the newspapers’ assets. The steering group is led by New York hedge fund Angelo Gordon.
Philadelphia Newspapers, the company that has owned the Inky and Daily News since 2006 and has bid $52 million to hold on to the assets, argued that it needed the information to accurately value the company. It vowed an appeal.
PNI is also trying to have the hedge funds barred from bidding on the newspapers at auction with the debt they hold.