Journal Register Shareholder Wants To Invest $25 Million In Company— If Lenders Restructure
By Joseph Weisenthal - Wed 14 May 2008 12:10 PM PST
Newspaper publisher Journal Register (OTCBB: JRCO) is veering close to bankruptcy. The stock, which fell from the NYSE to the bullet boards, currently trades at just $.19 per share, and it recently stated in an SEC filing that it risks violating a debt covenant come late July, barring some change. The company is currently about $640 million in debt. In a letter filed with the SEC, 5 percent shareholder Richard Barone says he will invest another $25 million in the company if the lenders will restructure their debt. The letter doesn’t say what kind of changes would need to be made, nor does it say what stake he hopes to take in the company, other than that it would be “significant”. We’ll see if Journal Register management picks up the phone, but at this point, public equity holders aren’t counting on this doing much for them: the stock is off over 7 percent today. (via Reuters)
Posted in: Media, Newspapers, Money
