Court Lets Philly News Ditch Acquisition Leftovers

Law360, New York (January 14, 2010, 5:19 PM EST) -- A judge has approved a request from Philadelphia Newspapers LLC to dump a $200,000-per-month obligation to the McClatchy Co., a vestige of a $515 million asset sale from McClatchy to the now-bankrupt newspaper company.

Philadelphia Newspapers can reject part of an asset purchase agreement that left it on the hook for workers' compensation policies still held in McClatchy's name, Judge Stephen Raslavich of the U.S. Bankruptcy Court for the Eastern District of Pennsylvania ruled Wednesday.

Philadelphia Newspapers agreed to pay McClatchy $515 million for stock and...
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