APNewsBreak: Lenders, Ray Perelman said to have bid for Philadelphia Inquirer, Daily News

By Maryclaire Dale, AP
Wednesday, September 22, 2010

APNewsBreak: Lenders, Perelman bid on newspapers

PHILADELPHIA — A company lawyer says creditors and philanthropist Raymond Perelman have submitted bids by the noon deadline for the bankruptcy sale of Philadelphia’s two largest newspapers.

Lawyer Larry McMichael said Wednesday that both bidders are likely qualified to enter Thursday’s auction. The minimum bid is $50 million cash.

Creditors had won an April auction for the company with a $139 million bid, but failed to close on the deal this month.

Perelman took part in the first auction as well. He and his son, Revlon Chairman Ronald Perelman, joined other local investors who pushed the bidding past $100 million.

A judge has scheduled a closed-door auction at U.S. Bankruptcy Court in Philadelphia.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

PHILADELPHIA (AP) — Wednesday is the deadline to submit bids and enter Thursday’s bankruptcy auction for Philadelphia’s two largest newspapers.

The minimum bid for the company that operates The Philadelphia Inquirer and Philadelphia Daily News is $50 million cash.

Company lawyer Larry McMichael says no bids had been submitted with just minutes to go before the noon deadline. But he expects at least two parties to take part.

Creditors who bid $139 million at an April auction but failed to close the deal vow to prevail again. And Philadelphia business mogul Raymond Perelman has shown serious interest. McMichael says three or four other groups have reviewed company records.

Local investors paid $515 million for the company in 2006, but filed for bankruptcy three years later.

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