Bankruptcy proceedings expensive proposition for Philly newspapers

    By: Tom MacDonald

    Bankruptcy court proceedings are underway for Philadelphia Newspapers Incorporated, the parent company of the Philadelphia Inquirer and Daily News. WHYY’s Tom MacDonald reports the company will spend a lot of money going through the bankruptcy process.

    By: Tom MacDonald
    tmacdonald@whyy.org

    Bankruptcy court proceedings are underway for Philadelphia Newspapers Incorporated, the parent company of the Philadelphia Inquirer and Daily News. WHYY’s Tom MacDonald reports the company will spend a lot of money going through the bankruptcy process.

    Transcript:
    Bankruptcy attorney Ed George says the federal court proceedings aren’t cheap. He says the cost of bankruptcy attorneys alone will add to the debt by millions of dollars.

    George: “It’s going to be a very expensive venture and of course the longer they stay in, the more expensive it becomes. As the lawyers fight it drives up the cost of it I can see several million dollars spent on the attorneys.”

    The goal of the bankruptcy is to make the outstanding debt more manageable for the business. In cases like this creditors try to gain more control when they feel current management isn’t doing all they can to make the company profitable.

    Listen:
    Use the play button below or right click on this link and choose “Save Link As” to download.

    [audio: reports20090225paper.mp3]

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