A federal bankruptcy judge has approved the sale of Philadelphia’s two daily newspapers to a group of their creditors, led by hedge fund Angelo Gordon & Co.
The new owners of Philadelphia Newspapers, which publishes the Philadelphia Inquirer, Philadelphia Daily News and philly.com Web site, hopes to close the $139 million sale by Oct. 8. Afterwards, the company’s main creditors, including Angelo Gordon and hedge fund Alden Global Capital, will have ownership stakes in the new owner, Philadelphia Media Network.
Also on Thursday, PMN worked out a deal with some of the newspapers’ unionized workers, the mailers. It still must strike a deal with the newspapers’ drivers, who helped scupper an early bankruptcy auction win by the Angelo Gordon-led group.