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Journal Register Co.

February 26, 2009 (Summary)

Newspaper publisher Journal Register Co. filed in Chapter 11 on Feb. 21, making it the latest U.S. newspaper company to buckle under deteriorating advertising revenue and debt that it cannot easily repay.

According to Bloomberg, Journal Register in July stopped paying interest on $692 million of secured debt and filed the Chapter 11 petition alongside a previously negotiated reorganization plan proposing to give new stock to the lenders. In addition to all of the new equity, the lenders are to receive $275 million in new term loans.

The petition listed assets of $596 million and debt totaling $737 million as of Nov. 30. Revenue in the first 11 months of 2008 was $384 million. Yardley, Pennsylvania-based Journal Register generated $463 million in revenue during 2007, down from $506 million in 2006. It has newspapers in smaller towns in Connecticut, Pennsylvania, New York, Ohio and Michigan.

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