Philadelphia Newspapers gets time for restructuring plan

Philadelphia Newspapers LLC, the bankrupt owner of the Philadelphia Inquirer and The Daily News, won court approval to remain the only party that can offer a plan of reorganization for the company. US Bankruptcy Judge Stephen Raslavich, at a hearing today in Philadelphia, extended the publisher’s exclusive period until May 11, giving the company more time to add the results of this week’s auction and other details to the current version of its restructuring proposal. The company’s lenders group outbid two rivals at an April 28 bankruptcy auction with a winning offer of $139m, according to Lawrence McMichael, an attorney for the company. The group, which includes Angelo Gordon & Co and a Credit Suisse Group AG unit, got financial backing from New York hedge fund Alden Global Capital. The sale must still be approved by Raslavich. A court hearing to consider the sale is set for May 25. Raslavich must also approve the company’s reorganization plan, including any new contract with the newspapers’ unions, which must be reached by June 30, according to company spokesman Jay Devine. Philadelphia Newspapers filed for bankruptcy in February 2009, only two years after Chief Executive Officer Brian Tierney led a buyout of the publisher. The company listed assets and debt of as much as $500m each.