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Creditors Take Over Philly Papers In $135 Million Deal

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Expect even more upheaval at Philadelphia Inquirer, Philadelphia Daily News and parent Philadelphia Newspapers. The company, which filed for bankruptcy last February, has now been sold to a group of its senior lenders for $135 million (That total includes $69 million in cash, a $36 million loan, and $30 million in real estate, according to the report in the Inquirer).

Brian Tierney, who led a group of investors who bought the company for $562 million four years ago and had tried to retain control, is out as CEO, although a successor hasn’t been named yet. As for what happens next, the outlook looks grim. The new owners are reportedly asking for $20 million in concessions from the papers’ unions. They promise, however, not to shut down the smaller Daily News.