NEWSPAPER DEATH WATCH: Tierney Says Inquirer And Daily News Will Be Out Of Money By July


INQUIRER: Brian P. Tierney, president and CEO of Philadelphia Newspapers L.L.C., lashed out at his company’s lenders Wednesday, suggesting that they were purposefully trying to financially destroy the media firm by seeking to delay the company’s scheduled April 27 auction. […] Should the auction be delayed, the company’s bankruptcy case could drag on well into the summer and beyond, which would be a financial disaster, Tierney said. The company has estimated that it will run out of operating cash by July. MORE

UPDATE: Philadelphia Newspapers L.L.C.’s bankruptcy auction remains scheduled for April 27. A three-judge panel with the U.S. Court of Appeals for the Third Circuit has rejected a request from the company’s senior lenders to delay the auction

RELATED: Hodara [lead attorney for the senior lenders] told that Tierney thought the lenders had “broken their promise” not to delay the auction, responded by saying it was Tierney who had failed to live up to his word. “Here’s a broken promise,” Hodara wrote in an e-mail response. “He borrowed $400 million to finance his acquisition of the company and is now doing everything he can to dishonor the desires of those to whom he made the promise to repay those obligations.” MORE

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