PHILADELPHIA (AP) _ Creditors hoping to take over Philadelphia's two main daily newspapers say the current owners are trying to "game" the bankruptcy system to keep insiders in control.
Lenders argued Thursday for the right to make a "credit bid" using some of the $300 million owed to senior creditors.
But Larry McMichael, a lawyer for the owner of The Philadelphia Inquirer and the Philadelphia Daily News, countered that the parties should bid with cash and not several hundred million dollars in "funny money."
Local investors paid $515 million in 2006 but filed for bankruptcy protection amid the industry-wide decline. A group of new and old investors are offering to buy Philadelphia Newspapers for $67 million in cash and real estate. Creditors could make a counterbid in an auction.
