Philadelphia Newspapers lenders win bankruptcy auction

Lenders offered $105m in cash plus the company's real estate, equivalent to $139m.

Creditors to the Philadelphia Newspapers - the bankrupt owner of Philadelphia Inquirer and the Daily News - have won the company's bankruptcy auction, outbidding a group of investors that included billionaire financier Ronald Perelman.

The company filed for bankruptcy in February 2009, over two years after its chief executive Brian Tierney led a buyout of the publisher. It accumulated assets and debt of as much as $500m each.

Philadelphia Newspapers owes nearly $318m to the lender group, which includes investment firm Angelo, Gordon & Co and a unit of Credit Suisse.

The new owners, who will now own Philadelphia Inquirer and the Daily News apart from the website, will begin contract negotiations with the unions. They however said the company will have to emerge from bankruptcy before any contracts get signed.