Secured lenders have again won the bankruptcy auction for Philadelphia's two largest newspapers with a $105 million cash bid.
Their offers tops the $85 million bid from philanthropist Raymond Perelman for The Philadelphia Inquirer and Philadelphia Daily News.
Creditors plan to cut costs by 13 percent across the board, including a 6 percent drop in newsroom salaries.
But they have pledged to keep publishing both newspapers and avoid newsroom layoffs for one year.
The 93-year-old Perelman, a city native, says he had hoped to preserve the newspapers’ integrity.
A group of local investors paid $515 million for the company in 2006 but are selling it to emerge from bankruptcy.
Creditors also won a previous auction but failed to close on the deal.
Lenders Again Win Philly Papers With $105M Bid
Secured lenders beat out philanthropist's bid of $85 million
Copyright AP - Associated Press