The company that has been created by the senior lenders, Philadelphia Media Network Inc., had reached contract agreements with all of the papers' unions, except the drivers, represented by the Teamsters, who twice rejected tentative agreements with the company. The failure to reach an agreement before the scheduled closing date of Sept. 14 forced the second auction.
The auction, conducted before a packed courtroom of dark-suited lawyers, financial analysts, and representatives of the company's lenders, took just four hours, a blink of the eye compared with April's 29-hour marathon in New York City. U.S. Chief Bankruptcy Judge Stephen Raslavich presided.
The senior lenders opened with their winning bid, virtually ending the sale as it began. The bulk of the remaining time was devoted to wrangling over contract language in each offer to determine if any of it undermined the primacy of the lenders' bid.
The sale would seem to signal an end to the convoluted and antagonistic bankruptcy case that began in February 2009.
At the auction's end, there was a palpable sense of relief among representatives of the new owners, a collection of financial institutions that held the majority of the company's $318 million debt.
"It feels like we have lifted a cloud from this company," said Gregory Osberg, chief executive officer for Philadelphia Media Network. "We are very excited."
Nearby as he spoke were managers of many of the company's lenders, including Angelo, Gordon & Co., Alden Global Capital, and Credit Suisse.
