Philadelphia newspaper auction will not be delayed

Creditors planning to take over Philadelphia's two largest newspapers lose motion to delay the actio

The creditors had asked if they can bid with the $300 million owed by owners of The Philadelphia Inquirer and Philadelphia Daily News. A panel had issued a split 2-1 decision last month that said the newspaper owners can demand cash bids at the April 27 auction and refuse to let creditors bid with credit, but let creditors stay the auction. However, senior lenders want all 13 circuit judges to decide the credit-bid issue and vowed to file an appeal with the Supreme Court. The newspaper owners hope the auction would help them reorganize their assets and enable them to repay a $15 million debtor-in-possession loan from creditors.