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 Heritage Newspapers and The Manchester Enterprise, intends to continue to operate as usual, and does not anticipate any business interruption during the restructuring.
“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,” JRC chairman and chief executive officer James Hall said. “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.”JRC 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.
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