[Photo by MICHAEL PENN]
REUTERS: A U.S. bankruptcy judge said on Thursday he would rule “promptly” on a key issue that could determine the next owner of Philadelphia’s two daily newspapers. Chief U.S. Bankruptcy Judge Stephen Raslavich heard arguments over bidding procedures for putting Philadelphia Newspapers LLC, the publisher of The 
Philadelphia Inquirer and Philadelphia Daily News, up for sale. MORE
NEW YORK TIMES: Some of the senior creditors – a group of private equity firms and banks – want to make a “credit bid” for The Philadelphia Inquirer and The Daily News, meaning they can claim the roughly $300 million they are owed as their bid, without putting up much additional cash. The current management, led by Brian P. Tierney, has supported another bid, one by local investors who would pay creditors $66 million in cash and real estate. That could keep Mr. Tierney and some of his financial backers in control. They have asked Judge Stephen Raslavich of Federal Bankruptcy Court to block the credit bid. They say that it would have a chilling effect on a bankruptcy auction, discouraging other potential buyers who probably would not be prepared to offer anywhere near $300 million. But Judge Raslavich said during a hearing in Philadelphia on Thursday that it is those senior creditors who would get nearly all the money raised in such an auction. “If there is a chilling, who’s harmed here, other than them?” he asked. “If they’re not concerned about it, why are you, and why should the court be?” MORE