Newspapers' owners choose Philadelphia Media Network Inc. as company's new name
The new owners of the Daily News, Inquirer and their Web site, Philly.com have picked an umbrella name for the venture that points to a multifaceted, digital future - Philadelphia Media Network Inc.
The new owners of the Daily News, Inquirer and their Web site, Philly.com, have picked an umbrella name for the venture that points to a multifaceted, digital future - Philadelphia Media Network Inc.
The new moniker was disclosed over the weekend in a 333-page filing in the newspapers' Chapter 11 bankruptcy case.
"What I hope it does is reflect our strategy to integrate all of our brand platforms, internally and for the consumer marketplace and the advertising marketplace," said Greg Osberg, the designated chief executive of the new company.
He said its brand names - the Inquirer, Daily News and Philly.com - would continue to be "front and center in dealing with consumers."
The same court filing identified two directors of the new company, a chief financial officer and details of a $39.3 million exit loan to pay off the costs of the newspapers' 17-month voyage through federal bankruptcy proceedings and provide working capital for the new owners.
David Hertzog, a lawyer with the New York law firm Winston & Strawn, and Martin R. Wade III, chief executive of Broadcaster Inc., a telecommunications and game-development company, were identified as directors of the new Philadelphia media company, joining Osberg and Bob Hall, the chief operating officer. Osberg said more board members would be added.
Bruce Meier, an executive with the restructuring firm Alvarez & Marsal who has already been working on the company's finances as a consultant, was named chief financial officer.
The $39 million exit loan will be financed by a consortium of investment firms that also hold ownership shares in the new company. It will carry an interest rate of at least 12.5 percent, according to the court filing.
The lender group includes Credit Suisse, committing $12.8 million; Angelo, Gordon & Co., $6.9 million; Alden Capital Group, $6.1 million; McDonnell Investment Management, $5.4 million; Halbis Distressed Opportunities Master Fund, $3.9 million; ETG Capital, $2.2 million; Ore Hill Partners, $1.1 million; and Cerberus Partners, $841,614. All are expected to hold equity stakes in the company besides their interests in the loan.
Osberg said the target date for settlement is early July.