Philadelphia Newspapers gets court confirmation of reorganization plan

By Lisa Kerner

Charlotte, N.C., June 28 - Philadelphia Newspapers, LLC's plan of reorganization was confirmed by the court, according to an attorney close to the case.

The plan confirmation hearing began on June 24.

As reported in May, PN Purchaser Co. LLC made the best offer for substantially all of Philadelphia Newspapers' assets.

Philadelphia Newspapers said that PN Purchaser is a newly formed entity that has received debt and equity financing commitments from holders of pre-bankruptcy senior secured claims.

PN Purchaser agreed to pay $105 million for the Philadelphia Newspaper assets, plus the amount of any disputed AP assets at closing, and will assume related liabilities.

"Equity distribution lenders" will receive 97.7% of the common equity of the reorganized company, court documents said.

The company's second disclosure statement supplement was approved in May.

Philadelphia Newspapers, based in Philadelphia, owns the Inquirer, the Philadelphia Daily News and Philly.com. The company filed for bankruptcy on Feb. 23, 2009 in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania, and its Chapter 11 case number is 09-11204.

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