Philly newspapers get back on their feet

Oct. 9, 2010 at 9:32 AM

PHILADELPHIA, Oct. 9 (UPI) -- Two newspapers in Philadelphia are emerging from Chapter 11 bankruptcy with a rescue plan forged by 32 hedge funds, court papers said.

The NewJerseyNewsroom.com reported Saturday that the Philadelphia Inquirer and the Philadelphia Daily News will emerge from bankruptcy on a plan led by New York City funds Angelo, Gordon & Co. and Alden Global Capital. The Wall Street Journal said the consortium of owners called themselves the Philadelphia Media Networks.

Gregory Osberg, formerly at Newsweek, was named publisher of the newspapers and the Philly.com Web site. Osberg said the new company would concentrate on adapting to the new digital news environment and on investigative reporting. In a statement released Thursday, Inquirer editor William Marimow, who helped the Inquirer win two Pulitzer Prizes, said he was returning to work as a reporter.

Osberg named deputy managing editor Stan Wischnowski as the managing editor on an interim basis.

The previous company, Philadelphia Newspapers LLC, filed for Chapter 11 protection in early 2009 with $400 million in debt that it could not cover, the Journal said.

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