Journal Register Co. Files for Chapter 11, Expects Normal Operations to Continue
The company’s Chairman and Chief Executive Officer James W. Hall said, “Journal Register Company has taken numerous steps to reduce its debt and strengthen its balance sheet through the divestiture of unprofitable newspapers, headcount reductions and various other means. However, due to the numerous challenges facing the newspaper industry and the overall economic downturn, our board of directors has decided, after careful consideration of all available alternatives, that a Chapter 11 filing was a necessary and best course of action for Journal Register company. We intend to emerge from the Chapter 11 process stronger, leaner and more financially viable in the current environment. We are also pleased to have the support of our lenders in restructuring our debt obligations. Our business will continue its normal operations and we will publish content as usual throughout this process.”
The company has filed a number of customary first day motions asking the Court for permission to, among other things, continue to pay employee wages and salaries and to provide employee benefits without interruption. The company expects to pay its vendors and service providers on normal terms for post-petition goods and services provided in the ordinary course of business.
The company filed its voluntary Chapter 11 petitions in the United States Bankruptcy Court for the Southern District of New York. Additional information about the Company’s restructuring is available at the Company’s website at www.journalregister.com. For access to Court documents and other general information, please visit http://chapter11.epiqsystems.com/journalregister.
About Journal Register Co.
Journal Register Co. owns 20 daily newspapers, more than 180 non-daily publications and operates over 200 individual Web sites that are affiliated with the company’s daily newspapers, non-daily publications and its network of employment Web sites. These Web sites can be accessed at www.JournalRegister.com. All of the company’s operations are strategically clustered in six geographic areas: Greater Philadelphia; Michigan; Connecticut; Greater Cleveland; and the Capital-Saratoga and Mid-Hudson regions of New York. The Company also owns JobsInTheUS, a network of 20 employment Web sites.