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'Inquirer' Short On Cash
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Philadelphia Newspapers, LLC, To Tap Extra Money To Pay ‘Critical Vendors’
By John P. Connolly, The Bulletin
The company that operates The Philadelphia Inquirer was granted permission to tap extra money to pay vendors who were issued checks before the company filed for bankruptcy.
Philadelphia Newspapers, LLC, the parent of The Philadelphia Inquirer and Daily News, met yesterday for a brief hearing at the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. The hearing granted the company permission to access funds that will allow it to continue operating while bankruptcy proceedings take place.
The court also granted an increase of money so Philadelphia Newspapers may pay “critical vendors,” those business partners the companies rely on to continue operations. The funds set aside for paying those vendors went from $650,000 to $1,050,000. Philadelphia news radio station KYW reported the increase was due to $500,000 in bounced checks from Philadelphia Newspapers. The money will be used to reissue the bad checks.
Judge Jean FitzSimon, who is hearing the Philadelphia Newspapers case, ended the hearing with a reminder that Philadelphia Newspapers has still not paid a $40 filing fee to the district court, chiding them for not having yet paid. The admonition echoed a similar remark she made at the last hearing in February, when she also asked the company to pay its filing fee.
A hearing over Philadelphia Newspapers’ future financing was delayed until 10 a.m., March 16. Other hearings are also scheduled for March 17 and 18.
Philadelphia Newspapers filed for bankruptcy on Feb. 21. It was the latest bankruptcy filing by a major metropolitan daily as newspapers all over the country suffer losses.
The New York Times Company, which owns the New York Times and the Boston Globe, agreed to sell all of the space it occupies in its headquarters for $225 million yesterday. The sale will generate money to pay debt, as print advertising revenue declines.
McClatchy Newspapers, which owns 30 daily newspapers in 29 markets, said yesterday it will cut 1,600 full-time jobs and cut wages for remaining staff as part of its restructuring plans. Chairman and CEO Gary Pruitt will take a 15-percent pay cut as part of the plan, and will forego a bonus for 2008 and 2009. Other executives are expected to have a 10-percent pay cut and will also not take 2009 bonuses.
Papers around the country have filed for bankruptcy or face closing down. The Seattle Post-Intelligencer, owned by the Hearst Corporation, has nearly reached its deadline to find a buyer. If a buyer has not been found by the deadline, Hearst said it would close down the paper’s print edition and contemplate running the paper as an online-only publication. Hearst has reportedly offered jobs for an online-only version of the paper to several reporters.
John P. Connolly can be reached at jconnolly@thebulletin.us
Philadelphia Newspapers, LLC, the parent of The Philadelphia Inquirer and Daily News, met yesterday for a brief hearing at the U.S. Bankruptcy Court for the Eastern District of Pennsylvania. The hearing granted the company permission to access funds that will allow it to continue operating while bankruptcy proceedings take place.
The court also granted an increase of money so Philadelphia Newspapers may pay “critical vendors,” those business partners the companies rely on to continue operations. The funds set aside for paying those vendors went from $650,000 to $1,050,000. Philadelphia news radio station KYW reported the increase was due to $500,000 in bounced checks from Philadelphia Newspapers. The money will be used to reissue the bad checks.
Judge Jean FitzSimon, who is hearing the Philadelphia Newspapers case, ended the hearing with a reminder that Philadelphia Newspapers has still not paid a $40 filing fee to the district court, chiding them for not having yet paid. The admonition echoed a similar remark she made at the last hearing in February, when she also asked the company to pay its filing fee.
A hearing over Philadelphia Newspapers’ future financing was delayed until 10 a.m., March 16. Other hearings are also scheduled for March 17 and 18.
Philadelphia Newspapers filed for bankruptcy on Feb. 21. It was the latest bankruptcy filing by a major metropolitan daily as newspapers all over the country suffer losses.
The New York Times Company, which owns the New York Times and the Boston Globe, agreed to sell all of the space it occupies in its headquarters for $225 million yesterday. The sale will generate money to pay debt, as print advertising revenue declines.
McClatchy Newspapers, which owns 30 daily newspapers in 29 markets, said yesterday it will cut 1,600 full-time jobs and cut wages for remaining staff as part of its restructuring plans. Chairman and CEO Gary Pruitt will take a 15-percent pay cut as part of the plan, and will forego a bonus for 2008 and 2009. Other executives are expected to have a 10-percent pay cut and will also not take 2009 bonuses.
Papers around the country have filed for bankruptcy or face closing down. The Seattle Post-Intelligencer, owned by the Hearst Corporation, has nearly reached its deadline to find a buyer. If a buyer has not been found by the deadline, Hearst said it would close down the paper’s print edition and contemplate running the paper as an online-only publication. Hearst has reportedly offered jobs for an online-only version of the paper to several reporters.
John P. Connolly can be reached at jconnolly@thebulletin.us
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