With the deadline on a proposed settlement between The Philadelphia Newspapers LLC and its creditors having expired last night, the fate of the publisher’s local dailies is uncertain. Preliminary talks between the company, which is a subsidiary of Philadelphia Media Holdings and operates the Philadelphia Inquirer, the Philadelphia Daily News and Philly.com, appeared to reach an impasse in the hours before yesterday’s 5PM deadline, the Philly Inquirer reported. The company needed creditors holding more than half of its $300 million debt to approve the $87 million settlement, which was made last week. The previous offer included $37 million in cash as well as ownership of the company’s headquarters, which is estimated to be worth about $29.5 million. With the deadline unmet, the senior lenders say they plan to bid for the company when it comes up for auction on Nov. 18. Calls to the company were not returned.
Hopes were raised that the papers would be saved in August, when Philadelphia Media submitted the debt plan in bankruptcy court that featured a local group led by home building exec and PMH Chairman Bruce Toll putting up portion of the money to satisfy the publishers creditors.
Last week, Philadelphia Newspapers upped its settlement offer, adding a $20 million note to be paid over five years. The company also said it would share profits and any increase in company value over that five-year period.

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