Phila. Newspapers Back on the Auction Block
Philadelphia's two biggest newspapers, The Daily News and The Philadelphia Inquirer are for sale again. A federal bankruptcy judge put the papers back on the auction block Tuesday after creditors missed a noon deadline to close the deal.
KYW's Mike DeNardo reports the judge ordered a new auction September 23rd after creditors who made the high bid last time, failed to reach contracts with all 15 unions by the noon closing deadline. Teamster drivers were the lone holdout, over pension funding.
Union president John Laigaie (right) is satisfied for now:
"We heard it's going to go up for auction again. We don't know what the outcome is going to be. But we know what we had going in here -- we didn't have a pension. And we don't know what the outcome is going to be. But today was not -- we're not unhappy at all with what happened here today in that courtroom."
Greg Osberg, CEO of the previous high bidders, says his group will bid again:
"We fully intend to participate in the next auction. We think it's a shame that it came to this. We think it's a tremendous waste of money and time."
But the rules are different for the next auction: It will be an all-cash deal, and closing cannot be contingent on labor agreements. The judge wants the sale to close by mid-October.
