Sonenshine Partners Advises Philadelphia Media Holdings In Its Chapter 11 Bankruptcy Process
Company Press Release
October 8, 2010

New York, NY - Sonenshine Partners LLC today announced the completion of the auction of Philadelphia Media Holdings Inc., the owner of The Inquirer, the Daily News and philly.com, held on September 23, 2010.  Sonenshine Partners represented the debtors of Philadelphia Media Holdings through its Chapter 11 process.

A group of senior lenders, 16 financial institutions including Angelo, Gordon & Co., Alden Global Capital and Credit Suisse, submitted the winning bid of $105 million in cash at an auction conducted before Chief U.S. Bankruptcy Judge Stephen Raslavich. The enterprise value implied by the winning $105 million equity purchase price is $139 million after taking into consideration the real estate and the cash at hand being part of the estate. The senior lenders group outbid an offer that started at $50 million and then was increased to $85 million by local investors Raymond Perelman, businessman and philanthropist, and the Carpenters Union pension fund.

The new entity has been renamed Philadelphia Media Network Inc. and emerged out of bankruptcy on October 8, after having reached labor contracts with all 16 unions. Gregory J. Osberg was named Philadelphia Media Network’s president and CEO on April 30. Philadelphia Inquirer Editor William Marimow stepped down and was replaced by Stan Wischnowski.

About Philadelphia Media Network
Philadelphia Media Network own the Philadelphia Inquirer, Daily News and philly.com.