UPDATE The Journal Register Company, owner of the Westport Minuteman and Fairfield Minuteman as well as 20 daily newspapers and other weeklies, sought Chapter 11 bankruptcy protection today, citing declining advertising revenue and a heavy debt load.
The company said in a news release it intends to continue to operate as usual, and does not anticipate any business interruption during its planned restructuring.
The Yardley, Pa.-based newspaper publisher reported $596 million in assets as of Nov. 30 and $692 million in debt, including unpaid interest. Revenue has fallen more than 20 percent since 2006, the company said in the court filing.
The company, whose holdings include The New Haven Register, has already come to agreements with key creditors through a pre-negotiated reorganization plan, and said it was planning to restructure its operations.
The company would cancel its stock and become a closely held company, owned by its lenders under the proposed reorganization plan filed in U.S. Bankruptcy Court in New York.
“With the increased competition from other forms of media and slumping advertising revenues, the downward pressure on newspaper earnings will likely remain intense in the near term,” company chief executive officer James Hall said in court papers.
Since 2006, the company’s revenue has dropped by more than 20 percent, Hall said.
The company said it expects to continue to generate sufficient cash flow to fund its operations and, as a condition to implementation of the reorganization plan, will obtain a $25 million revolving credit facility upon its exit from bankruptcy to further enhance its liquidity position.
Journal Register announced acquisition of the Westport Minuteman and Fairfield Minuteman in November 1997 as part of its purchase of HVM, L.L.C., of New Milford, publisher of a group of eight weekly newspapers, two shoppers and three monthly magazines. The deal was completed in January 1998.
The Westport Minuteman was founded in 1993.
