Monday, 27 June 2016
Last updated 6 min ago
Apr 29 2010 | 8:12pm ET
The creditors of Philadelphia’s two daily newspapers have won them in a bankruptcy auction, with an assist from a New York hedge fund.
The lenders, which include private equity firm Angelo Gordon & Co. and Credit Suisse Group, won the 30 hour auction with a $139 million bid. The offer was financed by hedge fund Alden Global Capital.
The winning bid topped offers from a group led by billionaire Ronald Perelman and another from Canadian investment firm Stern Partners. It must still be approved by a federal bankruptcy judge, with a hearing scheduled for May 25.
The Angelo Gordon-Alden Global group have pledged not to make wholesale job cuts at Philadelphia Newspapers, which owns the Philadelphia Inquirer, Philadelphia Daily News and Philly.com Web site. But what exactly that means is unclear: PNI’s new bosses say the company will continue to employ 2,500, but the company’s former CEO says it currently employs 4,500.