Inside the Newsroom

News, commentary, insight on local happenings and fun from the staff of The Saline Reporter and Milan News-Leader.

Monday, February 23, 2009

Our parent company files for bankruptcy protection

On Saturday, we learned our parent company, the Journal Register Company, had filed for bankruptcy protection. This morning, the official press release came for publication. This will be in Thursday's paper, but I thought I'd give our online readers a sneak peak.

JRC files reorganization plan

Journal Register Company has announced that the company and its subsidiaries have filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York to implement a pre-negotiated plan of reorganization with its secured lenders designed to substantially reduce its debt.

JRC, parent company of The Saline Reporter and Milan News-Leader, as well as newspapers in Manchester, Dexter, Chelsea, Ypsilanti, Belleville, Dearborn, Grosse Ile and Downriver, intends to continue to operate as usual, and does not anticipate any business interruption during the restructuring.

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 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,’’ Hall said. “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 expects to continue to generate sufficient cash flow to fund its operations. The Company also said that it has filed motions with the court to continue to pay wages, salaries and provide employee benefits to its employees and that vendors and service providers will be paid under normal terms for goods and services provided after the filing date.


Post a Comment

Subscribe to Post Comments [Atom]

<< Home

Powered by Blogger

Subscribe to
Posts [Atom]