Creditors, owners duel in court over auction rules; future of Philly newspapers at stake

Creditors, owners duel for Philly newspapers

PHILADELPHIA — The future of Philadelphia’s two major newspapers could turn on a pair of commas in the bankruptcy code.

The owners of The Philadelphia Inquirer and Philadelphia Daily News are battling creditors for control. The long-running dispute reached a federal appeals court Tuesday.

Creditors seized on the commas to argue for the right to use the $300 million owed them to bid for the newspapers.

The owners interpret the law to mean they can bar such credit bids. They hope a group of current and new investors will win the auction with a bid of $67 million in cash and real estate.

The commas could matter because they arguably affect whether a provision in question applies to some or all asset sales.