More daily papers are facing hard times now. Creditors are attempting to take over Philadelphia Newspapers, and have been joined in that fight be a longtime publisher. Full details at Yahoo! News:
Creditors will extend for two months the company’s exclusive right to present a reorganization plan. Their plan proposes the auction and posts a starting bid of $37 million in cash plus real estate and bankruptcy costs. The company values the plan at $92 million.
The debtors propose to keep $60 million in debt on the books, in contrast to the company’s plan to emerge debt-free.
"We believe that it achieves the highest and best value for estate assets for the benefit of creditors," said lawyer Larry McMichael, who represents Philadelphia Newspapers. "We believe that because we haven’t been able to find anybody else to put money in."
Ailing newspapers in Boston, Minneapolis and other U.S. cities have all struggled to raise capital or find new buyers, he noted.