Judge to weigh $139M sale of Philly newspapers

PHILADELPHIA (AP) — The contentious bankruptcy case of Philadelphia’s two largest daily newspapers is moving toward a close with their expected sale to a group of banks and hedge funds.

Lawyers for creditors who won a marathon auction for the newspapers have pledged to keep both The Philadelphia Inquirer and the Philadelphia Daily News alive. But they plan more cost-cutting.

Local investors led by public relations executive Brian Tierney bought the papers in 2006 for $515 million, but ran aground amid industrywide revenue declines. Tierney rallied local philanthropists who bid more than $100 million for the company. But the creditors prevailed with a $139 million bid.

They are now asking a bankruptcy judge to approve the sale at a hearing starting Thursday.