Philly Newspapers File Debt-free Bankruptcy Plan
PHILADELPHIA (AP) - Philadelphia's two large daily newspapers hope to emerge from bankruptcy protection debt-free by paying creditors $67 million in cash and 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 would give creditors the downtown building that houses The Philadelphia Inquirer and Philadelphia Daily News.
The company values its offer at $92 million, including $25 million in bankruptcy exit costs.
The plan includes $35 million in new money from investors including housing mogul Bruce Toll. Toll and other locals bought the company in 2006 for $515 million.
The newspaper industry has since suffered steep revenue and circulation declines.