Journal Register Co. Gets a Little Debt Breathing Room

By: Mark Fitzgerald Journal Register Co. has received a little relief from its lenders, the troubled community newspaper publisher disclosed in a regulatory filing.

Journal Register said it has amended its credit agreement with its lenders led by JPMorgan Chase Bank, lowering its borrowing limit to $150,000 from $200,000 and increasing the leverage ratios it will be allowed to maintain.

In the schedule of allowed leverage ratios for fiscal quarters until the beginning of 2011, the ratio begins at 6.75 to 1 for the rest of the year and rises to 7.00 to 1 for much of 2008 before gradually decreasing over the next two years to 5.00 to 1.

The previous schedule required a total leverage ratio of 5.75 to 1 for 2008, 5.5 to 1 for 2009, 5.25 to 1 for 2010, and 5 to 1 for 2011.

Journal Register has been hurt badly by the recession in Michigan, where four years ago it bought four dailies for $415 million of borrowed money.

Journal Register (Other OTC: JRCO.PK) opened in over-the-counter trading at 26 cents Monday.