Philadelphia Inquirer

February 23, 2009 (Summary)

The publisher of The Philadelphia Inquirer and Daily News said on Sunday it filed for Chapter 11 bankruptcy protection.

Philadelphia Newspapers LLC listed assets and debt of as much as $500 million each in a Chapter 11 petition filed in U.S. Bankruptcy Court in Philadelphia. The filing comes after talks on a “revitalization plan” between the company and its lenders fell apart, according to court papers.

According to Reuters, the newspaper is seeking bankruptcy court approval of up to $25 million in debtor-in-possession (DIP) financing provided by various lenders through NewSpring Capital. The money will allow it to keep paying its workers, the company said.

The company also stated that it has been negotiating with its lenders for the last 11 months. In that time, it said lenders including the Blackstone Group, Drinker Biddle and Akin Gump have billed it more than $13.4 million in interest penalties.

Sources and Related Articles

• Philadelphia papers owner files for Chapter 11
• Philadelphia Inquirer’s Owner Files for Bankruptcy

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