New auction for Philly newspapers and Philly.com

Source: Newspapers to be auctioned again

By Christopher K. Hepp

INQUIRER STAFF WRITER

The Philadelphia Inquirer and Daily News appear headed for another auction now that a noon deadline has passed without the closing of the purchase of the papers by Philadelphia Media Network Inc., according to a knowledgeable source.

According to a plan that still must be formally approved by Chief Bankruptcy Judge Stephen Raslavich, the auction would be Sept. 23 in his courtroom, according to the source. It would be a public auction, open to all bidders.

The successful bidder would need to post a nonrefundable cash deposit equal to 15 percent of the company's purchase price. It would be a straight-up sale, with no provisions to permit the buyer to back out of the purchase once it is approved.

Closing on the purchase of the media firm, which also owns the website Philly.com, would be Oct. 12, the source said.

Philadelphia Media Network said Monday it would be among the bidders if another auction were held.

Raslavich is scheduled to hold a 2 p.m. hearing today.

Word of the new auction comes with the collapse of the sale of the media firm to Philadelphia Media Network, a collection of 16 financial institutions that purchased the company in April for $139 million. Among the group is Angelo, Gordon & Co.; Credit Suisse, and Alden Global Capital.

The purchase agreement gave Philadelphia Media Network the right to walk away from the deal if it were unable to reach contract agreements with all of the company's unions.

Philadelphia Media Network had been able to settle contracts will all but one union, Teamsters Local 628, which represents the company's drivers. The drivers rejected their latest contract offer Sunday by a 191-4 vote.

Philadelphia Media Network had a deadline of noon today to close on its purchase and bring the company out of bankruptcy.

At the moment, the papers and website are still the property of Philadelphia Newspapers L.L.C., a group of local investors led by Brian P. Tierney that declared bankruptcy in February 2009.

In a statement Tuesday, the company said it "has ample liquidity to continue going-concern operations in the ordinary course of business."

 

In case you were wondering, I don't think any of us has any idea what's going to happen, or why the penson changes that all the other unions felt they had to accept as an alternative to being unemployed aren't being viewed that way by the Teamsters.
Looking at the bright side, all that's really happened so far is the closing has been put off, postponing the pay cuts we agreed to. So we've got that going for us.

 

Never in my wildest dreams did I ever think these events would happen in Philly. Never.