paidContent - Philadelphia Media Holdings Gets New Local Owners If Creditors, Bankruptcy Judge Approve
This story was written by Staci D. Kramer.
The Philadelphia Inquirer, Daily News and philly.com will live to fight another day—and with new owners—if creditors and a bankruptcy judge approve a plan filed late Thursday by publisher Philadelphia Media Holdings, LLC. Under the plan, a local group led by home building exec and PMH Chairman Bruce Toll would put up $52 million ($35 million in new equity and a $17 million letter of credit) to acquire non-real estate assets and while creditors would get roughly $66 million (Reuters reports $37 million in cash and $29 million in Center City real estate. Another $25 million would go to pay bankruptcy exit costs. The new owner would get the assets debt-free and, under this plan, it looks like PMH CEO Brian Tierney would stay on the job. The process, which includes a fair-market price review, will take at least 60-90 days.
Toll was part of the original group that bought the papers from McClatch for about $562 million. The company has been saddled with debt ever since and filed for bankruptcy in February, claiming $390 million in debt. Release.
By Staci D. Kramer