DIP Lenders' Delays Forced Loan Default: Phila. News

Law360, New York (March 25, 2010, 4:25 PM EDT) -- The bankrupt Philadelphia Newspapers LLC has sued its debtor-in-possession lenders, saying they delayed bankruptcy procedures and an asset sale so much that it was impossible for the publisher of the Philadelphia Inquirer and other papers to repay the DIP loan by its maturity date.

The publisher filed its adversary complaint against Citizens Bank of Pennsylvania, Wells Fargo Foothill Inc. and Credit Suisse Loan Funding LLC in the U.S. Bankruptcy Court for the Eastern District of Pennsylvania on Tuesday.

The DIP agreement made in September 2009 provided...
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