A bankruptcy auction is expected to determine who owns The Philadelphia Inquirer and the Philadelphia Daily News.

Philadelphia's two largest newspapers are going on the auction block in a New York City law office as part of a bankruptcy reorganization plan for Philadelphia Newspapers LLC.

A group of local investors headed by business moguls Raymond and Ronald Perelman are trying to keep the papers away from creditors who are mounting their own bid. A third bidder, Canadian investment firm Stern Partners, is also in the mix.

The current owners are in bankruptcy after paying $515 million for Philadelphia Newspapers in 2006, then watching its value plummet.