The money pit
Read more: Rendell says he's assembled group offering to buy PMN
In 2006, The McClatchy Co. sold Philadelphia Newspapers Inc. for $515 million to advertising executive Brian Tierne
y, who assembled a group of local investors to form Philadelphia Media Holdings L.L.C.
Tierney's company declared bankruptcy in 2009; the assets were purchased for $139 million by hedge funds that had bought discounted debt from the bankrupt company's creditors.
According to a New York Post story last week, the current owners are seeking $100 million for the company, which sold its iconic North Broad Street building in October for $22.7 million, according to public records.
Observers of the marketing process say the new owners would be fortunate to receive such a high bid. The company's representatives have told prospective bidders that PMN had $4 million last year in earnings before interest, taxes, depreciation, and amortization. Using traditional standards, a company with that kind of cash flow would be valued at less than $40 million.
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