By: Mark Fitzgerald
Journal Register Co.’s stock price dipped below a dime Wednesday, the day it is expected to be in technical default of its loan covenants.
The troubled publisher of The New Haven (Conn.) Register also formally notified the Securities and Exchange Commission (SEC) that it is deregistering its securities, and no longer has to file reports with the SEC.
In the filing, Journal Register said its securities are held by 131 owners.
It also said it is deregistering all stock that was to be used in its management bonus plan.
In mid-afternoon trading on the Over-The-Counter Pink Sheets Wednesday, Journal Register (Other OTC: JRCO.PK) was priced at 9 cents, down 1 cent, or 6.25%.
Journal Register has previously warned that it expected to be in technical default of the loan covenants on Wednesday, when its updated total leverage ratios are calculated.
If Journal Register violates the covenant, its lenders have the right to demand immediate repayment of outstanding debt, which amounts to about $642 million.
“Unless there is significant improvement in the company’s operating results during the second fiscal quarter or the company is successful in obtaining an additional amendment to the total leverage financial covenant, it is probable that the Company will be in violation of such covenant as of July 23, 2008,” Journal Register said in an SEC filing in May.
Journal Register’s vice president of finance, Gary Struening, did not return a phone message seeking comment on the loan covenant and SEC filings.