Philadelphia newspapers back on auction block

Philadelphia’s two major daily newspapers and Philly-dot-com will hit the auction block next week…again. A group of creditors won an auction in April, but the sale fell apart when one of 15 unions turned down a contract offer from the new owners.

Philadelphia’s two major daily newspapers and Philly-dot-com will hit the auction block next week…again. A group of creditors won an auction in April, but the sale fell apart when one of 15 unions turned down a contract offer from the new owners.

The creditors who bought the papers in the first bankruptcy auction have said that if they have to, they’ll win a second auction.

But one participant in the last bidding war seems to be bowing out. Neils Gelder is the Executive Vice President of Stern partners, based in Canada .

“We bid around $80-85 million dollars depending on how you value things…We’re monitoring developments but I really don’t expect we’ll be there this time around.”

As for the other party in the last auction, the man who bought the papers years ago and had to declare bankruptcy..leading to the auctions.

Spokesman Jay Devine, says Brian Tierney is still in the game…

“He’s talking to many of the folks who had expressed an interest previously, and then also talking to some others who he thinks may have a new interest…I think they’re other newspaper buyers from around the country.”

While the prospective bidders gather their dollars, the papers’ employees will have to wait to learn their fate.