Pa. Fights Philly Newspapers' Ch. 11 Plan

Law360, New York (November 20, 2009, 1:33 PM EST) -- Pennsylvania's revenue department has challenged Philadelphia Newspapers LLC's proposed reorganization plan, saying it is objectionable because it would unfairly let the bankrupt newspaper company off the hook for unpaid state taxes.

In an objection launched Thursday in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania, the Department of Revenue for the Commonwealth of Pennsylvania asked for an order denying confirmation of the company's first amended plan, which was filed Oct. 27.

According to the filing, the department has “multiple priority claims” against Philadelphia Newspapers,...
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