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2 newspapers file reorganization plan

PHILADELPHIA — Two large Philadelphia daily newspapers hope to emerge from bankruptcy debt-free by paying creditors $37 million in cash plus real estate to settle nearly $400 million in debt.

Philadelphia Newspapers filed its reorganization plan Thursday, six months after filing for Chapter 11 bankruptcy.

The plan gives creditors the iconic downtown building that houses The Philadelphia Inquirer and Philadelphia Daily News.

The company would raise $35 million in new capital from investors including housing mogul Bruce Toll, the Carpenters Union Pension Fund and others. Publisher Brian Tierney, a former public relations executive who led the group that bought the company three years ago, would presumably remain at the helm.