UPDATE 1535: Creative Loafing chain sold to biggest creditor for $5 million (Atlanta Journal-Constitution)
UPDATE 1459: Washington City Paper Now Owned by Atalaya Capital (DCist)
Atalaya outbids Eason, assumes control of Creative Loafing (Creative Loafing Tampa)
UPDATE 1332: Hedge Fund Atalaya buys Creative Loafing in equity auction (Tampa Bay Business Journal)

UPDATE 1256: New York equity firm snaps up Tampa's Creative Loafing (Tampa Tribune/TBO.com)

UPDATE 1240:Chicago Reader Has New Owners (Chicago Reader)

UPDATE 1236:Tampa's Creative Loafing chain taken over by hedge fund Atalaya (St. Petersburg Times/tampabay.com)

UPDATE 1229: Atlanta Creative Loafing says Atalaya won.

UPDATE 1223: Chicago Reader calls it for Atalaya.

UPDATE 1218: Unconfirmed Twitter chatter is that Atalaya has won.

In Tampa, Fla., Judge Caryl Delano has begun the process of deciding who will own Creative Loafing, the newspaper chain that purchased Washington City Paper and the Chicago Reader in July 2007 and filed for Chapter 11 bankruptcy 14 months later. Creative Loafing CEO Ben Eason is bidding for the company, as is Atalaya Capital Management, which loaned Eason $30 million toward the original purchase.

Here are some links to current stories about the proceedings; I'll update them as new information becomes available.

Creative Loafing Auction Goes to Judge Today (Editor & Publisher)

Creative Loafing equity auction is underway (Creative Loafing Atlanta)

Reader Bidder Would Bring Jim O'Shea Back to Chicago Media (Chicago Reader)

Creative Loafing's publisher may lose chain of weeklies today (Tampa Tribune/TBO.com)

Will Creative Loafing's fate be decided today? (tampabay.com)

Battle to control Creative Loafing is heating up (Creative Loafing Atlanta)