The hedge funds leading a proposed buyout of Philadephia’s two daily newspapers remain in talks with the employees’ unions, but are unlikely to complete the deal by the end of the month.
A group including Philadelphia Newspapers creditors and hedge funds Angelo Gordon & Co. and Alden Global Capital won a bankruptcy auction for the company, which publishes the Philadelphia Inquirer and Philadelphia Daily News, in April. But it has so far been unable to reach a deal on concessions from the unions, with talks set to continue next month.
Meanwhile, PNI is trying to win approval for its bankruptcy plan in U.S. Bankruptcy Court. A hearing on the matter continues tomorrow and could run into next week.
After a judge approves the plan, the hedge funds and their partners will have until the end of August to complete their purchase of the company.