Newspapers’ sale deadline extended for 2 weeks

August 31, 2010|By Christopher K. Hepp, INQUIRER STAFF WRITER

The formal sale date of The Inquirer and the Philadelphia Daily News has been extended for two weeks to permit the prospective new owners more time to resolve contract issues with five unions.

The closing deadline for the sale had been today, but Chief Bankruptcy Judge Stephen Raslavich extended it until noon Sept. 14 at the request of Philadelphia Media Network Inc., a collection of 16 financial institutions that bought The Inquirer, the Daily News, and the website Philly.com at bankruptcy auction in April. They include Angelo, Gordon & Co., Alden Global Management, and Credit Suisse.

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The request was supported by Philadelphia Newspapers L.L.C., the current owners of the media outlets.

Raslavich said that after meeting with representatives of both sides of the sale, he was convinced contract agreements could be reached with the unions if more time were given.

Absent an extension, Raslavich said, there was only "a range of disagreeable alternatives."

Although he did not spell out those alternatives, one would be a collapse of the sale.

The new owners have the right to walk away from their purchase if they cannot reach contracts with all of the company's unions. They have agreements with 11. Unions for the drivers, pressmen, machinists, operating engineers and roadmen have failed to ratify tentative agreements.

Mark Thomas, a lawyer representing Philadelphia Newspapers, said his clients agreed to the extension because they continue to see the sale to Philadelphia Media as a desirable outcome.

"We think it is in the best interests of all our employees and the community at large," Thomas told Raslavich.

After the hearing, Greg Osberg, Philadelphia Media's chief executive officer, said his group was continuing to talk with all unions without contracts. He said he was convinced agreements would be reached by Sept. 14.

"These issues are solvable," said Fred S. Hodara, the lawyer representing the new company.


Contact Staff Writer Christopher K. Hepp at 215-854-2208 or chepp@phillynews.com.

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