PHILADELPHIA (AP) — Philadelphia Newspapers hopes to use $35 million in new capital to settle nearly $400 million in debts and emerge from bankruptcy.
A lawyer for the company says an opposing creditors’ plan would leave the papers saddled with up to $85 million in debt. Lawyer Larry McMichael says The Philadelphia Inquirer and Philadelphia Daily News would be hard-pressed to survive under that plan.
McMichael offered basics of the competing reorganization plans after a hearing Tuesday, but neither has been filed.
The new judge handling the bankruptcy of Philadelphia’s two large dailies warned all sides to stop bluffing or risk having the newspapers go under.
The company filed for bankruptcy in February.
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August 11, 2009
