Deadline Looms for Philadelphia Newspapers
Teamsters’ drivers and the machinists union are re-voting today on proposed contracts they previously said ‘no’ to with the prospective new owner of the Philadelphia Inquirer and Daily news. Another ‘no’ vote could throw the bankruptcy process in turmoil.
KYW’s Steve Tawa reports a dozen unions have agreed to various concessions, some of which rejected offers in previous days, but re-voted and approved contracts (see previous story).
The judge overseeing the case wanted to go to close August 31st, but extended it two weeks, giving the buyer and dissenting unions until Tuesday, to work out differences.
The purchase agreement allows the buyer the right to walk away from the closing, if it doesn’t reach contracts with all of the unions. Chief bankruptcy Judge Stephen Raslavitch has made it clear if that happened, the participants would be looking at ‘a range of disagreeable alternatives.’
None of the participants cared to speculate publicly, but most agree the options include another loan to extend the close, a re-do of the auction, or in a worst case scenario, the collapse of the sale. If that happened, Judge Raslavitch would convert the chapter 11 reorganization into a chapter seven case, and liquidate the papers.