UPDATED: Nightmare on Broad Street?

See updated post below.

UPDATE: The latest:

In a day of dramatic twists and sharp exchanges in the Philadelphia Newspapers L.L.C. bankruptcy case, it was announced Monday that Raymond G. Perelman and Ronald O. Perelman, a Philadelphia father and son of wealth and renown, had joined the local investors bidding to own the newspaper company.

The tautest moment came in a hearing before U.S. Bankruptcy Judge Stephen Raslavich when the local investors said another bidder, the largest holders of the company's debt, planned to terminate the company's workforce and require employees to reapply for their jobs. A lawyer for the senior lenders called the accusation "unfair and despicable."

The truth is out there. Also:

John Morton, a newspaper analyst, said a bottom-line focus was consistent with cuts hedge funds typically seek.

"Hedge funds - their heart and soul is not in the newspaper, it's in making money," he said.

Stay tuned -- the excitement is just beginning!