Philly Newspapers gets bankruptcy plan extension

[June 17, 2009]  PHILADELPHIA (AP) -- A bankruptcy judge is giving Philadelphia Newspapers an additional 60 days to file a reorganization plan.

Creditors owed nearly $400 million object to the extension. They say the company, which publishes The Philadelphia Inquirer and Philadelphia Daily News, hasn't been negotiating seriously since it filed for bankruptcy protection in February.

At a Tuesday hearing, Executive Vice President Richard Thayer testified that Philadelphia Newspapers hopes to raise $50 million to emerge from bankruptcy, about half of it from insiders who put up $150 million toward the $515 million purchase of the company in 2006.

Thayer says the company won't start labor negotiations until after the reorganization plan is filed. Several union contracts expire on Aug. 31.

[Associated Press]

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