Last year, it is arguable that no one city was hit the hardest in the newspaper industry recession than Philadelphia. Both the Philadelphia Enquirer and Philadelphia Daily News were forced to declare Chapter 11 under the umbrella of their publisher, Philadelphia Newspapers LLC. They were subsequently bought out by hedge-fund investors, but the price of two of the city’s biggest local papers remains unknown, and a federal judge has just backed up the creditors claim that they do not have to reveal the number.
This might be a problem for CEO Brian Tierney who, along with local investors, has raised $52 million to buy the paper back. It may seem like altruism, but remember, this is the same Tierney who was given a transportation budget of $1,500-a-week back in 2008. With numbers like that, no wonder the company went bankrupt.
Tierney bought the papers from McClatchy in 2006 for $562 million.
Read More: Hedge-fund creditors win round in newspapers’ bankruptcy case –Philly.com
, Tensions Flare in Philadelphia Newspapers Bankruptcy —New York Times