Hearing set on Phila. Newspapers financing

U.S. Bankruptcy Judge Jean K. FitzSimon today scheduled a hearing Monday to consider Philadelphia Newspapers L.L.C.'s motion to postpone a hearing on financing during the company's Chapter 11 reorganization for a month.

The hearing had been scheduled for April 13 and 14.

Philadelphia Newspapers, which owns The Inquirer, the Philadelphia Daily News, and Philly.com, said in a filing it wanted to delay the hearing until the week of May 11 because it has been doing well enough financially to go longer without debtor-in-possession financing and because it would be in the company's best interest to avoid costly litigation over the financing.

However, senior lenders rejected the company's proposed hearing delay and opposed the use of cash flow to run the business beyond April 13 and 14, according to the company's filing.

Philadelphia Newspapers filed for bankruptcy protection Feb. 22.