Journal Register Co. in Financial Trouble
The Journal Register Co. has struck a deal (a Forbearance Agreement) to delay interest payments to several banks until the end of October. The JRC has also d-listed its stock (JRCO.PK) as it stands at a rate of four cents per share.
The Journal Register Co. publishes 22 daily newspaper and 300 non-dailies with a concentration in 6 geographic areas: Greater Philadelphia; Michigan; Connecticut; Greater Cleveland; and the Capital-Saratoga and Mid-Hudson regions of New York.
The Journal Register Co. is currently carrying $640 million of debt, which compared to the $463.2 million it made in 2007 seems daunting. What will make rising out of debt even more difficult for JRC is that through the Forbearance Agreement, it cannot gain funding elsewhere to get them out of this bind.
Being so far under the desired revenue goal it is hard to say if the Journal Register Co. will make it.
