The company and its senior creditors agreed to the extension before the hearing.
"I agree that what you propose makes sense under the circumstances," Raslavich said after short presentations by company lawyer Lawrence G. McMichael and Andrew Kassner, a lawyer for Citizens Bank.
The extension was requested after U.S. District Judge Eduardo C. Robreno ruled that the creditors - which include Angelo, Gordon & Co., CIT Group Inc., and Citizens Bank - could be barred from using $318 million in debt they are owed to bid for the media firm, a process known as credit bidding.
Philadelphia Newspapers has proposed paying its senior lenders about $67 million in cash and property to settle the debt and had agreed to an auction to determine the company's market value.
The lenders appealed Robreno's decision to the U.S. Court of Appeals for the Third Circuit, which is scheduled to hear arguments Dec. 15. An auction date is to be set after a ruling on the matter.
Yesterday's decision extends the period of exclusivity until Jan. 31, or 30 days after the Third Circuit rules on the credit-bid question, whichever is later.
Philadelphia Newspapers filed for Chapter 11 bankruptcy protection in February.
at 215-854-5957 or cmondics@phillynews.com.
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