Philadelphia Newspapers LLC, the publisher of The Philadelphia Inquirer and Daily News, filed a US$92 million reorganisation plan, which aims to keep the newspapers in local ownership and pull the company out of bankruptcy, Reuters reported Friday.

The plan will see a group of local investors fund the reorganisation, which was filed with the federal bankruptcy court in Philadelphia Thursday. The group, led by local real estate executive Bruce Toll, has proffered $52 million, which includes $35 million in new equity and the balance in credit, to the struggling media company.

Other investors include the Carpenters' Union Pension Fund and Penn Matrix Investments.

The plan provides creditors around $67 million in cash and Philadelphia real estate, which includes the newspapers offices. The cash makes up $37 million worth of the debt payment and the real estate forming $29 million. The rest of the $92 million filling concerns the internal costs of extracting the company from bankruptcy.

If approved by the court, the plan would remove nearly $300 million in debt.

Philadelphia Newspapers LLC sought Chapter 11 bankruptcy protection in February, sighting a dramatic fall in revenue, the economic environment and the company's debt structure.