Debt-laden U.S. publisher Philadelphia Newspapers LLC, which owns the Philadelphia Inquirer and Philadelphia Daily News, improved an offer to its lenders with a $20 million credit note in an effort to keep control of the titles.
The note would be repaid over five years at 6 percent interest, the company said in an article published on Tuesday on the Inquirer's Web site.
The publisher said the offer would guarantee $87 million to its senior lenders to clear about $300 million in debt.
Philadelphia Newspapers LLC owes $300 million to a senior lenders group that includes Citizens Bank, a unit of Royal Bank of Scotland Group Plc. The lenders want to buy the papers.
The company said the new sweetened offer has the backing of a local investment group comprising Bruce Toll, vice chairman of Toll Bros Inc, the Carpenters Union pension fund and philanthropist David Haas.
The group, which would be called Philly Papers LLC, had previously pledged to invest $35 million in the company.
(Reporting by Sakthi Prasad in Bangalore; editing by John Stonestreet)