A bankruptcy auction to decide the fate of Philadelphia's two major daily newspapers ended Thursday with a group of creditors taking ownership for $139 million.

Publisher Brian Tierney won't fight confirmation for ownership of Philadelphia Newspapers by creditors whose bid proved to be too much for a group of local investors backed by local philanthropists.

The lenders' winning bid will allow them to try to salvage some of their $318 million investment in the company, which was bought by a group including Tierney and home builder Bruce Toll in 2006 for $515 million.

Tierney said the bidding at a New York City law office moved at an "electrifying" pace, in $5 million and $10 million increments, at the end of an auction that began around 3:45 a.m.

"It went for nine times last year's profit," Tierney said. "It shows how people respect the papers."

Tierney said the bidding by the local investment group led by Revlon chairman Ronald Perelman and his father had reached $129 million, but it was clear the creditors would just go higher if they did.

Back in Philadelphia, staff at the two papers were relieved to finally know who will have control of the company.

"There is certainly a tremendous sense of relief in that this long and complex and rather torturous bankruptcy process may finally be at an end," said Diane Mastrull, a reporter for The Philadelphia Inquirer and a chair of The Newspaper Guild of Greater Philadelphia.

"But we are also somewhat worried because now we enter possibly another new and terrifying phase, and that is new ownership without much of an idea of what their expectations are for their business and what their commitment to the businesses will be."

Stern Partners, a Vancouver-based company that owns stakes in the Winnipeg Free Press and other Canadian newspapers, also bid in the auction.