PHILADELPHIA (AP) — Awash in $400 million in debt, investors who bought Philadelphia's two major newspapers in 2006 are trying to retain control of them through a publicity blitz dubbed "Keep It Local!"
The investors — led by housing entrepreneur Bruce Toll and former public relations executive Brian Tierney — have proposed a reorganization plan for Philadelphia Newspapers LLC, which filed for bankruptcy protection in February, that pays creditors about 22 cents on the dollar.
Bank and other creditors have so far balked and are working on their own plan to run The Philadelphia Inquirer and Philadelphia Daily News. At a hearing Friday, senior lenders led by Citizens Bank will ask a bankruptcy judge for the right to negotiate a tentative contract with the local Newspaper Guild, which represents hundreds of writers, photographers and advertising staff.