Journal Register Enters into Forbearance; Plans to Restructure

By: E&P Staff

The Journal Register Co., which was trading over the counter as low as 3 cents, has entered into a forbearance agreement with JP Morgan Chase Bank, the company announced today. Under the terms, Journal Register will not have to pay interest on its debt from the period of July 24 through Oct. 31. Interest during this period will still accrue.

The publisher of the New Haven (Conn.) Register will not be able to make further extensions of credit, new letters of credit, or swingline loans under forbearance. Certain existing letters of credit can be renewed.

Additionally, Journal Register retained Conway, Del Genio, Gries & Co. (CDG) to provide financial services. Robert Conway, a principle with CDG, has been appointed chief restructuring officer at Journal Register.

As of mid-afternoon, Journal Register (OTC: JRCO.PK) was trading up 32.8% by a penny to 4 cents.

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