After 15 months, the time has finally come. Brian Tierney still doesn’t know who bugged his office (and he’s the only one who cares), but the Inky, Daily News and Philly.com are up for auction, right now!
The stage was set quite perfectly. It was the locals, the debtors and the wildcard (a Canadian company that owns a bunch of stuff, as well as pieces of newspapers in the Great White North) all together at last for a triple-threat match.
An early Inky report showed us, as we’d hoped, the paper’s employees were getting a front seat for their jobs’ potential demise and/or beginning of a career blogging at the Examiner/bidding for jobs editing foreign exchange students’ thesis papers over at Elance. The Inquirer Online Desk wrote at 11:28 a.m., “Inquirer reporters are in place at the law firm’s building at 1585 Broadway awaiting developments. We will report them as they become available.”
Accusations were thrown around up until the time of the 11 a.m. bidding war (and still may, though the doors are shut), with Tierney and others suggesting the debtors intended to fire the entire staff of both the Inky and Daily News – including, God Forbid, the recent Pulitzer winners – and hire back just 51 percent of staff, at least at first. Fred S. Hodara, who represents the villains—senior lenders— called the accusations and testimony of accusations last night “unfair and despicable,” though he wouldn’t deny the charges. Needless to say, the Teamsters weren’t too happy about that.
Then, after allowing former Wild Oats owner Ron Burkle to step out of the deal (he was brought in by Gov. Rendell, whose claim for in-butting is “Pennsylvania jobs”), the Perelmans stepped in as investors alongside locals like Bruce Toll, David Haas, William Graham and the Carpenters’ Union Fund.
Ah, the Perelmans. The 92-year-old billionaire father and 67-year-old billionaire son who already have a plethora of Philly landmarks named for their philanthropic family. We’ve got to trust these dudes' investments – that’s billionaire with a “B” – and Raymond, the senior, thinks the paper is going to “rebound with a stronger national economy,” according to an Inky report.
The bidding is reportedly going a little something like this: In a large conference room in Manhattan owned by the Proskauer Rose law firm, auctioneers McMichael and Mark Thomas are running their mouths in a round-robin style, in which each bidder is given the chance to up the existing high bid with a minimum monetary bid increase of $100,000. After each round, bidders are given 15-20 minute breaks to reconsider, prepare for the next round, go to the bathroom and maybe munch on some Trader Joe’s new fruit jerky.
Like Philadelphia Newspapers’ staff, we’re refreshing our browsers by the minute, waiting for this thing to come to fruition. More details as they’re available. Stay tuned.
It wasn't the Inky this time. It wasn't the New York Times, or the Washington Post. It was a tabloid, supported by a small staff (smaller than you probably think) of journalists who love their city, and who have devoted their careers to protecting it.
Bankruptcy in the real world isn’t like Monopoly. In the real world, filing Chapter 11 is a way to protect a company from its creditors while reorganizing. In Monopoly, on the other hand, nobody ever reaches bankruptcy because people quit playing when they realize it’s three hours in and nobody has even built any [...]
That certain seems to be the message of my old boss, John Temple, former editor and publisher of the late and lamented Rocky Mountain News. Since that paper’s closure, he’s been taking some time to ponder the future of the news business — and it’s fair to say he’s skeptical about what he’s seen of [...]
Tierney already has recruited three local investors who are willing to invest at least $52 million in cash and credit to buy the newspapers in a Chapter 11 bankruptcy reorganization.
Creditors, who are most likely pissed off, must put up real cash -- not the money owed to them -- for the Daily News and the Inky.
The auction has finally ended—the lenders have won. Cue screams.
Last Monday, the Phillies signed franchise slugger Ryan Howard to a staggering five-year, $125 million contract extension. Two days after the extension was made public, a similar sum was paid for a much different entity: Philadelphia Media Holdings’ lenders shelled out $135 million at auction for the bankrupt Inquirer, Daily News and Philly.com.
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