Philadelphia Newspapers creditors oppose second exclusivity extension

By Alice Popovici

New York, Aug. 18 - Philadelphia Newspapers, LLC creditors Alex Plotkin and 401 Restaurant Associates LLC object to the company's second request for an extension to its exclusive periods to file a plan of reorganization and solicit votes on the plan, according to a Monday filing with the U.S. Bankruptcy Court for the Eastern District of Pennsylvania.

Plotkin and 401 Restaurant said the company entered bankruptcy without a reorganization plan after having been in default for nearly a year, and has since made no progress in reaching an agreed-upon plan with lenders and equity holders.

"Indeed, the competing interests cannot agree how to keep the [company] afloat in bankruptcy, much less after," the motion states. "As an example of the lack of progress, the senior lenders and the [company] have both proposed debtor-in-possession financing plans so hostile to each other's interests that the neither plan can be approved by the court."

On Aug. 5 the company asked the court to extend its exclusive plan-filing period to Oct. 30 from Aug. 31 and the solicitation period to Dec. 30 from Oct. 31.

The company, based in Philadelphia, owns The Inquirer, the Philadelphia Daily News, and Philly.com. Its Chapter 11 case number is 09-11204.

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