Randall Chase, an AP business writer in Wilmington, Del., reports that a judge there canceled a hearing Wednesday regarding a request by lenders to prevent the Bay Guardian from collecting advertising revenue from SF Weekly.

The Guardian, headed by Bruce Brugmann, has been trying to collect a $21 million award from the Weekly and its parent, Village Voice Media, after winning a lawsuit over pricing issues. A jury found that the SF Weekly illegally priced ads below the cost of production in an attempt to run the Guardian out of business.

An attorney for the Bank of Montreal, which is representing the lenders owed millions of dollars by Village Voice Media, said the parties are in serious settlement talks in California, according to the AP.