Philadelphia Newspapers LLC filed for bankruptcy protection in February, which established a 120-day period during which only the company could propose a reorganization plan to the court.

Yesterday's order by Judge Stephen Raslavich is the latest in a series of extensions of the exclusivity period that have resulted from procedural battles in the case.

The extension followed a ruling by U.S. District Judge Eduardo Robreno that the newspaper company's senior creditors did not have to right to bid the $318 million they're owed in an auction, which is part of the company's proposed reorganization plan as a way to establish the market value of the company.

The newspapers' chief executive, Brian P. Tierney, has recruited three local investors who are willing to buy the newspapers in a Chapter 11 bankruptcy reorganization. They would invest about $35 million in cash and the creditors would receive the company's Broad Street headquarters building, valued at about $30 million. However, the creditors would have to let the newspapers use the building rent-free for two years.

The creditors want to be able to use the company's outstanding debt as a bid in the auction, and have appealed Robreno's ruling barring credit-bidding to the Third Circuit Court of Appeals.

Because the battle over credit-bidding has delayed the auction, all sides in the case agreed that the exclusivity period for Philadelphia Newspapers should be extended.

Raslavich's order extends the period until Jan. 31 or 30 days after the Third Circuit rules on the credit-bidding dispute, whichever is later.