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Journal Register Co. Gets Break on Debt as S&P Cuts Rating to Lowest Possible

Magazine article Editor & Publisher

Journal Register Co. Gets Break on Debt as S&P Cuts Rating to Lowest Possible

Article excerpt

Journal Register Co., reeling under $642 million of debt as revenue from its papers in Michigan tumbles, said it has reached an agreement with its lenders to skip interest payments until November.

Separately, Standard & Poor's downgraded Journal Register to the lowest credit rating possible, "D," indicating a company is in default. S&P suggested that the company may file for bankruptcy protection.

Journal Register had previously said it would be in technical default of its loan covenants when its debt ratio was reset last Wednesday. The publisher of the New Haven Register, 21 other dailies, and nearly 300 non-dailies said its lenders, led by JP Morgan Chase Bank, N.A., had agreed to let Journal Register skip interest payments during the period from July 24 through October 31. Interest will continue to accrue.

During the period, Journal Register's lenders are suspending commitments to extend further credits. "In addition, certain restrictive covenants, including covenants with respect to asset sale proceeds, indebtedness, acquisitions and dispositions, will be amended," Journal Register said in a statement. …

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